Your dream luxury destination

Who doesn’t want luxury in daily life? After a long day everyone searches for comfort and luxury and if his home successfully provides it, it will be just perfect for him.

Nowadays luxury real estate is gaining popularity. More and more people are attracted toward luxurious living, thus the real estate market is also expanding in this area. All over India the top builders like, DLF, MGH, Bhagats, Shrachi, Bengal Peerless, D.C Paul and others have started making such luxury destinations. Some builders are even clubbing it with other facilities like lifestyle clubs, restaurants, shops, children’s park and entertainment zone. They have named these as lifestyle projects. These projects are in high demand among the NRI clients. Almost in all metros, Calcutta, Delhi, Chennai, Bengaluru, Hyderabad and Mumbai, the top builders have introduced such luxury projects. These projects are little high priced, due to special facilities they provide.

With the boost in overall economy, people today enjoy spending in lifestyle. They have started improving the basic standard of living and having experienced quality living standard in abroad, many prefer to enjoy similar facilities in India. For them the developers have created new luxury destination in India. Today anyone can spend in luxury homes and enjoy facilities like never before.

How to sell a house and earn money?

To sell your property or land and earn quick money is what everyone dreams off. Many people believe in investing in land and property rather than investing in other securities. But to make money from the investment he must know the exact process of selling the property.
• Inspect the condition of the house and the fix a price.
• Check all property papers are in line and there is no dispute in this regard
• Talk to friends and find out if any one is interested.
• Advertise in the local paper and also in the website.
• Develop your communication and motivation skill so that it becomes easy for you to convince the clients.
• Hire professional sells people if needed.
• If you have huge properties then start selling in parts. For. e.g. sell the shop areas first then may be flats or duplex.
• Check with banks and collect information about second hand house loans.
• Create the hype and inform anyone and everyone about the availability of the house
• Renovate the interior if needed.
• If you have used the flat, do check that all connections and bills are cleared till the last month.

Tips of becoming a real estate marketing specialist

Today real estate ha grown as a appropriate field for employment. Young graduates and specialists in marketing field are opting for this field. To sell a property is very challenging and the field provides immense scope to grow and make quick money. Therefore follow the below mentioned tips if you wish to plan a future in property selling.
• You must have passion for your work.
• A professional degree in sales and marketing will give you an edge in the competitive market and you will grow fat.
• Identify your clients and develop your communication skill. Approach wisely and get your property sold.
• As a real estate professional, do not remain within flat and houses selling. Instead try and work as a fresher in big projects and learn about space selling, like, office space, shop or other properties.
• Understand the demand of your client, know their budget and then help them with their hunt.
• Learn briefly about law and order and other government laid rules about property owning in that city or town.
• Also find out about home loans. Try and help your client as much as you can. In this way you will be able to win their trust.

Tips of buying a second hand house in India.

If you plan to buy a pre owned flat which is available in a good condition, do follow the simple steps while purchasing to avoid any hassles in future.
• Arrange for fund. Since you will need quick money, do visit the banks and find out about the house loans and etc.
• Do check the location of the lat or house you are planning to buy. Your residence must be in a good position in the city.
• Inspect properly if needed take help from experts and find out the present condition of plumbing, woodwork, electricity, fitting and etc.
• Before finalizing on the price do go for property estimation. This will help you in availing better bargain.
• Do keep extra 10 % expense in your budget, and bargain wisely because you will need to renovate and reword on the interior before using it. Hence you will need extra cash for this work.
• Do not buy a problem house, for e.g. if you see dispute, death or NRI owner and never go through a broker.
• Check out if it has garage facility for the owner or not.
• Inspect land ownership, plan and other documents. If needed take professional help and get things checked by a lawyer.

How to check the authenticity of the real estate developer?

If you are planning to buy a home in India, do check the authenticity of the builder or developer. Read the article and gather tips of buying a property.
Do request the builder or developer to supply you with the following detail before finalizing on the project.
• Legal papers about the ownership of the land. Do check thoroughly if the land has more than single owner. If you have any doubt about any information, do consult a property specialist lawyer and get the documents checked by him.
• Check at the local police station, if there is any case against the particular builder or is he into some land related dispute.
• Next request for the construction clearance papers and for the approved plan of the building. Get it checked and verified at the local government office.
• You can also ask the builder about the bank which has provided the loan and can contact the respective bank later to find out about the financial status of the project.
• Also speak to other client’s about the performance and service in regards to maintenance and quality construction.
You must go for a thorough scrutiny so that you may not fall into some land or property oriented dispute after you have spend your hard earned money.

Property Prices increasing, Nice Time to Make Money from Second Property

As property costs surpasses the 2008 top levels, realty specialiststrust that a alteration is probable in the coming couple of quarters, particularly in cities like Mumbai and Delhi where prices have developed faster. This gives a chance to real estate investors to earn profits. A Navi Mumbai-based marketing executive, Parvinder Singh Sidhu, approves. Five years before, he had purchased a second home of 750-sq-ft flat at Belapur in Navi Mumbai for around Inr13 lakh. Nowadays, the worth of the apartment is Inr35-40 lakh. However, with the talk of improvement in the Mumbai property market, Sidhu is preparing to vend this house and make profits now. “I have a house to stay, so I can think of selling this one. If property rates drop in the future, I could purchase a same property at a lesser price,” he stated.

Is it truly a good time to earn money in on your real estate investment? The president of the (EAAI) Estate Agents Association of India,YashwantDalalstates that property values in several markets have started to show signs of improvement. ” Where the costs have peaked, we assume the prices to drop by 25-40% in bigger cities. If you had purchased a house earlier just as an investment, I would propose that you sell as soon as you can and purchase a parallel property at reasonable price later,” says Dalal. As per him, property purchased even 3 years back may have valuedalmost 100-150 percent in some regions, so it may be a nice time to reserve profits.

Real estate projects in India

Due to recent popularity of land and property in India, many renowned builders have started investing in the Gurgaon area. In Gurgaon the investment is easy and houses and offices are available at a competitive price. Thus it has become one of the first preferences among the investors and developers.

Among the pioneer developers, DLF, MGH vilas, DLF Magnolia and very recently Ambience Caitriona has emerged in the city. These preferred projects offer 4-5 bedrooms flat with central air conditioning system. These projects are equipped with modern amenities and are specifically constructed as per client’s demand.

This popularity of real estate is so contagious that even the best developers of the country have decided to develop new projects for both upper and middle class.These projects are spread all over from Gurgaon Sohna Road, MG Road, Old Gurgaon Road and Golf Course Road. Most of the high end projects for instance The Palm Drive and The Palm Springs by Emaar MGF, Belgravia at Central park 2 and Raisina by Tata Housing are coming in Sohna Road and Golf course road in Gurgaon.

Besides residential projects, they are constructing, new offices and expensive houses. Since this place is highly accessible from south Delhi, both investors and house hunter prefer this location.

Attractive property investment opportunity in India

If you are interested in making good money, real estate India gives you the scope of doing it comfortably. Although the recent recession has mildly affected the property market and has actually helped some by affecting the price of properties. The high priced properties dropped and this helped the middle class clients to get the scope of investing in such lifestyle properties in a cheap price.

From a different perspective, the real estate in India has offered attractive scopes of making more money. As far as the investment options are concerned, stock, trade are not as promising as this real estate market. Other options are subject to market risk and have to depend on fluctuating sensex. Even the interest rate offered by bank and government securities is not as lucrative as investing in land or property. According to the industry experts, in next few years India will experience a huge growth in the real estate sector, hence investing in land will be rewarding.

Today with the increase in purchasing power due to NRI sector, it is wise to invest in property. As the market shows hopes of growth and good return in future at present you must decide on the investment so that you may get good profit in future.

Upcoming Real Estate Projects in India

Below mentioned are the upcoming projects in India;
Special projects like, Ravisa in Ahmedabad, Shri Sumati Enclave in Ghaziabad, New Virat Nagar Phase 1 in Jaipr, Earth Infrastructures in Gurgaon, Indiabulls Enigma in Gurgaon, Bharat City in Ghaziabad, Raheja revanta in Gurgaon, Fusion homes in Ghaziabad and Ekta Meadows in Mumbai. To know all about these projects you must visit their respective websites and contact there to get more relevant information.

Apart from residential projects in cities like Kolkata, many commercial projects like Spring Valley is in the pipeline. The city has already experience the beautiful project like Vedic village, which is considered as one of the best properties in the world. This year the builder group has decided to come up with another similar project called Spring Valley. As the name valley denotes, it will have green golf ground and out door sports like Calcutta has never seen before. The rooms and clubbing will be located on the other side and spa and nature-o- therapy will be offered here for the first time. The valley is very close to airport, so that it is easy for any one to reach there comfortably. The rooms are well constructed and rates are within reach of many.

Tips for land purchase in India

Investing in land and erecting your personal house can be a dream for many middle class Indians. Try and select a plot not far from locality. You must reside close to the city so that you can enjoy all facilities yet can lead a life in peace. But to understand the issues involved in this activity of land purchase and raising your dream house, read the below mentioned points properly.

• Your first criteria should be purchasing the land properly and wisely so that you do not face any trouble in future.
• Always check before investing. Do check and invest in residential land only.
• Do check the legal issues, like title of the land, registration, property certificate and etc.
• Do not forget to get your plan for construction sanctioned by the local authority so that you face trouble in future.
• Also ensure about the tax clarity
• So check that your house must have an independent road for entry and exit.

Finally before construction do check that the land has adequate electrical connection, sanitary and drinking water connection. And water supply, drainage system and sewage, rain water clearance is also important aspects to be checked before purchasing the land.

Tips to buy your dream home

For most people investing in their dream home just happens once in their lifetime. Therefore to spend on their dream home, they must do a thorough research on property developers and then decide.
To make your home shopping easy, we have some below mentioned tips for you. Just read through these tips and spend wisely on real estate;
• Identify your needs. Answer questions like, how many people will reside in the house? Their taste, preference. If you have guests to come over and stay often and etc.
• Frame a budget and the go home shopping. You budget will help you select the best within you reach.
• Decide if you want a flat or house.
• Discuss with your family members. Since you will be not staying alone in the house, you must discuss every issue with them.
• Find out how many rooms you need primarily. Apart from living, bed and kitchen if you have children you must have their room and a study.
• Plan out for a lawn or garden space. Accordingly select the plot area.
• If need be take help from professionals and make your dream home a reality.

Thus you can follow these tips and get your dream home constructed as early as possible.

. All about the shopping complex and commercial building

Since the mid nineties, India too has invested in developing huge office buildings and commercial building as public places. Today almost every city has huge shopping complex, natural parks, entertainment hubs, heritage plaza and etc. Malls have special structure that offers one stop shopping experience which one used to enjoy in other countries. Today every individual while returning from office, just drives in to any mall and does his shopping or spend time watching movie and then return home. Malls have become an outdoor spot for every individual.

Just as the commercial building have developed, so has the office buildings underwent facelift. The IT investment has a major effect in the industry. Today almost every building is constructed in a special way. Most offices are huge and special interior designers are employed to beautify such buildings. Renowned architects design these office buildings and make work area a happy zone to roam about.

Both commercial and shopping complexes have suffered up gradation. New designers, architects, interior specialists have stepped in and together they are working in order to beautify the cities. These buildings have multiple facilities so that the visitor gets everything under one roof. Life has really become more organized with recent real estate activity.

Real craze behind the land business

Now days the trend in property making is, offering a set lifestyle to its client. Suppose you wish to buy a flat and you contacted a builder. He will immediately take you to the project site which is under preparation and explain you what all facilities you will get along with the residential flat. In most cases, they offer a lifestyle club with multi gym facility, lawn, sports area and Children Park. They also have special security system and many other dedicated facilities that were not available in the project of the initial days. Hence, the makers offer you a complete package with numerous facilities that you get along with the flat to live in.

These new real estate projects are growing all over the country. The present generation also prefers to invest in life style category flats so that they do not have to drive down the city and go for gym or children’s play area. Since everyone is working, people hardly have extra time to spend on such activities, but if they are available within the premises, then things become comfortable and easy to access. Thus the new life style clubs have started pulling crowds and the generation next couples are happily investing in such lifestyle projects.

Indian real estate trend: a brief idea

Real estate is one of the most profitable businesses of India. Its growth and investment has boosted the recent economy of the country. Since the price of land has a tendency to increase, people here prefers to invest in lands and in possible in dwelling flats. The graph of this sector always indicates profit for its investors. Hence in India it is wise to invest in lands and buildings and sell if and when you are in need of immediate money. In olden days people used to invest in trading. Today, besides trading spending on land is wiser and almost pays more than double return of the money spent.

Today in all the major cities like, Delhi, Mumbai, Hyderabad, Chennai, the areas in and around the city is developing very fast. New building, flats, houses, shopping malls are being raised all over the city. Old cities like Kolkata is even experiencing similar trend in the extension city areas or near by suburban areas. The new offices and building are giving new look to the old city. Today any and every salaried person is therefore investing in real estate heavily.

Thus today’s generation can spend in land and can easily secure their future.

Most number of unsold homes in Delhi NCR

The price levels is being maintained by the real estate developers as the interest rates are rising and demand is slowing down. According to real estate intelligence platform, this year the maximum number of unsold property was observed highest in Delhi-NCR at 102,758, it was followed by Mumbai at 90,512 and after that Bangalore with 46,596 units. Combinations of many factors like rise in interest rates, slow demand are responsible for inventory pile up. The concerns for the developers this year has been limited access to funds, high construction costs and increasing cost of debts. Regulatory policy by RBI, delay in getting project approval and uncertainties related to land acquisition also affected the developers. For buyers the biggest issue for concern was affordability.

Since March 2010, Reserve bank of India has raised its policy rates by 12 per cent. Lending rate of banks showed similar rise. The price correction in real estate which was expected by the buyers does not seem to happen yet. The developers have slowed their fresh launches but there is still no fall in price rates. Reports show Gurgaon showed maximum price rise of 21.4 per cent, Mumbai at 13.2 per cent and Pune at 12.5 per cent.

No drop in real estate prices

Economics theory of demand and supply is not in accordance with the real estate market of India. It is not hidden that the actual demand of both commercial and residential real estate is currently quite low in India. Everyone knows that not even half of recently launched new projects have been sold in the major new cities in the country and as a result the inventories are getting piled up with the builders. In a survey report submitted by a property selling website there has been a drop of around 1 per cent in property index prices nationally. The major metropolitan cities like Bangalore, Mumbai and Hyderabad are experiencing bigger downfall.

It cannot be estimated that in future any correction in prices can be observed which can materialise the demand. It’s a difficult task to figure out the exact period of time till which this trend will stay. The research head of Knight Frank said that the main reason of high real estate price is market being governed by investors and not by consumers. The total absorption of investors comprise of 50-53 per cent. The investors, who rent out property, get full tax exemptions on the interest rate. On the other hand a first time buyer gets only 1, 50,000 exemptions on interest.

Real estate PE funds reduce investment goals

Investors in the real estate sector are getting much cautious in putting their investments in the real estate sector. This can be attributed to a variety of causes but for investors all that matter is investing at the right time, for the right project and also with the right fund manager. Nowadays as many real estate sector private equity (PE) managers have hit the markets with new fund raising plans; it has changed the whole situation.
According to Mr. Shohbit Agarwal, joint MD, Capital Markets, JLL the new funds hitting the markets are looking for smaller investment cycles, they are raising smaller amounts keeping in view the current market position. Many realty firms have reduced their investments targets much lower to what they earlier sought to achieve.
Various firms like Kotak Realty, DHFL, ICICI Ventures have already lowered their investments in the sector, and many other such real estate firms are planning on the same lines.
Such companies are looking out for smaller investment period. They are looking out for residential projects in smaller cities mostly. Mr. Vikas, Director at Kotak Realty firm expressed that it’s a challenging time to raise funds, but for them it was about making small investment with small target.

More demand in real estate market

With home loan interest rates going north, prospective investors are moving towards suburbs and peripheral areas of the cities.
According to a recent survey conducted by MagicBricks, around 81% of respondents said they would defer the purchase. In other words, more and more buyers are will prefer to wait for some more time. They won’t buy any fresh properties.
However, according to the survey, 57% of the respondents want to buy in the next six months.
The survey says that due to rising home loan interest rates, investors are more or less out of the property market in the metro cities.

Around 60% of respondents said they are living in rented houses. 50% of the respondents are buying properties for immediate self-use and another 34% are buying for future end use.

More than 66% of the prospective buyers have reconciled to buying in the suburbs and peripheral areas. But they are buying only in those areas and localities that are close to employment hubs or areas that have strong transport linkages to these emerged high on user priority lists. They also keep in mind such other facilities like civic amenities, social infrastructure and return on investment.
Around 45% respondents feel that social infrastructure is the most important factor while buying a property. Schools, hospitals, and institutes of higher education, shopping and entertainment facilities are key social infrastructure.
Among civic infrastructure, water and power supply and back-ups, good quality sanitation, health and waste management are more important.

Property deals peak ahead of value revision

A new set of market-based guideline values for property registration will come into force from January, builders and buyers in Tamil Nadu are rushing to close deals before the charges are revised.

The number of property deals has witnessed a sharp rise after the announcement for revised guidelines was made. Thus in the month of November alone, the Tamil Nadu government mopped up Rs 715 crore from stamp duty and registration charges.

A senior government official said that there is a panic in the minds of prospective buyers and builders, as stamp duty and registration charges will rise sharply once the new guidelines come into force.
A large number of transactions take place daily in cities like Chennai and Coimbatore.

The state government collected Rs 3,965 crore till November in the current fiscal from property registrations. This was 23.17% higher than the identical period last year.
And this is the highest earning for a month in the last 20 years.

During the year financial year, 2010-11, the State government's revenue from stamp duty and registration charges amounted to Rs 5,020 crore, which is expected to go up to Rs 6,500 crore.

The guideline value is the minimum value of a land determined by the government, based on which stamp duty and registration charges are calculated. The charges add up to 9% of the value of the property.
The draft of new guideline values was published on December 15, and the final values will be announced in January. The values were revised last way back in 2007.

As equity sinks, HNIs move money to realty

With equities losing charm, high networth individuals (HNIs) are asking their wealth managers to invets more and more capitals in more lucrative commercial assets.
At the current situation, stock markets are becoming more and more unpredictable and the real estate values have slumped in some cities.
So, the HNIs are buying more and more pre-leased commercial assets.
With the demand for office space growing up, especially by the IT/ITeS sector, office rentals have rebounded and are touching the 2007 levels.
Such pre-leased properties are yielding annualised returns of 10%-12%.

Earlier, HNIs used to invest in under-construction residential buildings. Now, they are moving away from such asset. They are now eying the real estate market that is witnessing a price correction in some parts of the country. This is happening due to some controversies surrounding land acquisition in some places like Noida.
Local real estate funds are also emerging as a preferred investment option for the HNIs.
Due to such controversies in the land acquisition process, the Reserve bank of India (RBI) has come out more stringent laws to regulate flow of funds to the real estate sector.
Banks have been directed by the apex bank to reduce their exposure to the real estate sector. But HNIs are pumping more and more funds in areas that are yielding more returns.

The Real Estate Industry of India

Previously in general people bought houses which would last a lifetime. In today’s world things have changed and this system has slowly become obsolete and faded away. The general public now think differently and more because the property market is flourishing, expanding and swelling up. The important and power word in today’s life is ‘Investment”. This has not only generated for the people in India but has also opened the doors to the foreign investors to take further step.

The Growth in the Real Estate Sector is rapid in India. The real estate has become a genuine excitement and joyousness for everyone. People have taken this in high spirits. Indian real sector has seen an unparalleled and remarkable success in the last few years. The villages adjacent to the metro cities have reached to the crowning point for the land prices. This has persuaded and influenced the farmers to sell their share of land for good money. The development in the real estate market embraces growth in both commercial and residential spheres. In the Indian economy the real estate industry is one of the fastest and is growing rapidly. In the last few decades India has seen tremendous and huge changes.

Hike in repo rate criticized by realty industry

Reserve bank of India announced hike in repo rate recently and this hike was highly criticized by the top developers of the realty sectors. Experts of the real estate industry believe that this hike will cripple the real estate sector and will put them through hard time. Every year realty sectors contributed a huge sum of money towards the growth and development of the economy and this hike will make lessen the profits of the developers. The repo rate is the rate at which other banks borrow from Reserve bank of India. The hike will put a negative impact on the realty sector. The rise in cost of home loans will lessen the property demand as the customers who are already burdened with home loan will not engage in new transactions.

Managing director of Omkar Realtors and developers Ltd also shares similar views, he said that realty sector is facing a hard time dealing with issues like hike in interest rates, inflation and slowdown in global economy. The interest rate has reached to such a level that the real estate industry will not be able to handle any more rise in the interest rates, it will damage the realty industry badly. There is shortage of apartments in urban areas. The realty developers are not able to complete their construction on time as result of which projects are being continuously delayed.

Metro connectivity dominating land prices

Real estate prices in the cities that have metro connectivity or which are in close proximity to the metro stations are comparatively higher than cities which do not have metro connectivity. In cities like Delhi where majority of middle class people travel by metro, prefer to purchase house in areas that have metro connectivity. The developers of real estate are expecting rise in property rates in the areas which are under the DMRC for metro projects. Every year the city witnesses jump in the rates of property by 5-10 per cent. The experts of the real estate believe that the areas which have metro connectivity or which are under development of metro route will experience jump of more than 10 per cent.

Interestingly in some areas the prices near the metro area where quite low when the construction was taking place and there very fewer buyers of that land but after the completion of metro route the prices of the land started to pick up slowly. The floor area ratio has risen from 3 to 4 which indicate that the construction that falls within 150-250 metres in proximity with the metro station will increase the number of floors; this statement was given by president of Bangalore realtors association of India.

Construction not affected by NAREGA: Jairam Ramesh

Jairam Ramesh, the union minister for rural development has slashed the allegation on National Rural Employment Guarantee Act. He said that NAREGA is not responsible for shortage of labour in construction and agriculture sector. He further stated that this scheme NAREGA has played an important role in life of rural people, agriculture wages have increased and migration of rural people to urban cities has also been controlled by NAREGA act as now people living in rural areas can earn by working in their village itself. Under this scheme adult member in rural family is paid sum of Rs.120 per day for a period of 100 days in 365 days.

In a statement made by Confederation of real estate developers association of India they held NAREGA responsible for shortage of labour for construction as the real estate projects are getting delayed and they are experiencing time and cost overrun. Now it has also become difficult to employ labour for the purpose of agriculture.Ramesh told the media that NAREGA act will help in controlling poverty because the majority of poor people in India live in villages and under developed regions. For a comfortable and healthy living, it is the duty of government to pay them more. The real estate sector is facing a difficult time due to the shortage of labour in construction field.

Gurgaon; New destination for realty developers

Gurgaon has become a hot spot for the realty developers, investors as well as for the local people. The main reason behind the popularity of Gurgaon is its good connectivity with the Nation’s capital and close proximity to the international airports in the city. With all these vital factors Gurgaon has become one of the most preferred locations for the real estate developers. It has acquired the status of Millennium city as the most prominent multinational are establishing their offices and business venture in Gurgaon. It has become hub of IT and BPO sectors as more and more companies are pooling into the market.

DLF ltd, the leading developers in India are the major developers in Gurgaon. There is DLF city and apartments in Gurgaon which are attracting the investors and buyers to invest in this region. Not only private developers but the government is also showing lot of interest for building up infrastructure in Gurgaon. Manesar, a place in close proximity to Gurgaon is emerging as the industrial hub for the national capital. The developmental projects are not restricted to just industrial infrastructure but they are also planning to build up commercial and offices complex, residential sectors, hospitals and education institutions.

Akshaya developers plans to increase its business

Chennai: Real estate developer, Akshaya has planned to widen is presence over the country in the real estate sector and expand its services to the southern parts of India. The extension into the other parts of the country is also a part of its other plans according to which it aims to develop commercial properties, IT parks, health care and schools in the cities of the country.

According to T Chitty Babu, Chairman and CEO at Akshaya, they’ll be entering different other maret segments like healthcare, commercial property, retail, schools, etc which may be obtained through township projects. The company majorly focuses upon developing various real estate projects in residential sector from the past 16 years. He even added that he wishes to raise the capital of the company to Rs. 1000 crore in 2015 while unveiling the new logo for the company.

He said that the company would be focusing on the green building concepts adding that CRISIL would be rating their projects on a regular basis. On the expansion scenario of the company he said that they are having projects across Tamil Nadu and that in the next three years they’ll be foraying with real estate projects in three more states- Andhra Pradesh, Kerala and Karnataka.

Sobha, Paranjape Builders and many other developers targeting the senior citizen business

At a larger scale the real estate sector might be facing tough times, as there are real estate firms which are trying to explore new avenues to target to experience growth in their business. A new trend has started wherein various real estate firms have started building especially for the senior citizens. According to a census of 2011, there are around 10 crore Indians who are above 60 years of age.

There are various factors apart from the census reports due to which many real estate firms are focusing on projects only for senior citizens. Such factors include higher life expectancy, rising trend of nuclear families, lack of safety and security in cities, etc. Due to all these factors the senior citizens are becoming the best target for the ever confused real estate developers. Several services such as facilities management, easy access to healthcare services, security systems, spiritual spots, etc are made available to pull more and more customers towards these projects.

Many real estate firms such as Paranjape builders, Ashiana housing, Sobha developers, Rakindo group, Brigade group, etc have already started developing special projects for the senior citizens. Such projects are majorly based in Delhi, Pune, Bengaluru, Chennai and Coimbatore. LIC has also started developing with the name of care homes in Bengaluru.

Will the price of real estate projects fall now?

Now considering the ever increasing growth and massive widespread of real estate projects in India, the prices are expected to drop so as to help the middle class buy their dream home. From the modern age townships in Delhi and NCR to the tall apartments in Mumbai the real estate sector has left no stone untouched. It is spreading in each and every part of the country wherever the resources can be availed.

The price of real estate is expected to fall as the developers are always facing the crisis due to short of funds. It is clearly observed that in large parts of the country, especially the main markets of real estate the sales have been poor till the June quarter. The payment on sales which is indicated in the receipts is much less than satisfactory which also results in poor reports on the total sales.

Thereby considering the lack of sales it would be easily deduced that now the prices would come down, but actually it isn’t so at all. Sources of money for the real estate developers are not only their finished projects, there are always investors, banks and private equity capital to tap in case of need.

Diwali celebration in the real estate industry - Fireworks are less for developers this Diwali

Generally the time of festivals brings joy for the real estate developers as the rate of sales during Diwali goes up to a higher level. But this season it looks like the sales will not reach to the level of expectations of the developers. The reason for low rate of sales is slow economy due to which the confidence of consumer has fallen down. Indian real estate suffers with slow rate of economy. It has been seen in past years that during the months of October and November the sales of real estate goes up by 20-25% but this year due to high rate of inflation the growth of economy has slowed down which adversely affected the Real estate sector.

Many market experts, developers and brokers are preparing themselves for drop in transaction. The current booking prices and rate of interests are too high that the buyers are reluctant to invest in property for the time being until the rate of interests drops down. The Hiranandani group Niranjan Hiranandani said in a statement that this Diwali there will not be much lights and fireworks for the real estate developers. The developers tried their best to impress the buyers with new and fascinating festive offers but all their efforts failed as it could not increase the sales.

Faster growth of real estate with economy

A two day Real estate exhibition was held in Riggae at Ramada Hotel. There are more than hundred projects on display as more than 40 Indian property firms participated in this exhibition. This was the 19th Indian real estate exhibition which was organised by Indus. It is India premier management company for real estate exhibitions in collaboration with Kuwait events and exhibitions. The event was inaugurated by Satish C. Mehta,Indian ambassador to Kuwait. Mehta in his statement made to the media said that he is happy the way India’s real estate is growing and widening its horizons in international cities.

Indian real estate developers are providing the NRI’s to invest in housing as it is the best field to invest nowadays. Ambassador Mehta also said that Indian real estate is also attracting the interest of foreign investors. It is estimated that by the end of 2012, there is a requirement of around 26 million apartments which is the main reason why so many developers are roping in the real estate industry. He also emphasized that the growth of Indian economy is another reason for the increase in demand of real estate. The income of people in India is increasing which has influenced the real estate industry.

Land to be returned to the farmers of UP

In a recent judgment of the Allahabad High Court, the court has ordered three villages to be returned to the farmers. Farmers of around 64 villages of Noida, Noida extension and Greater Noida had challenged the acquisition of around 3000 hectares of their land acquisition is becoming a burning issue in the country. These lands of farmers are being taken for many purposes which primarily includes growth of the economy and the development of industrial sector.

Though the government policy is to draw a balance between the economic growth and the interest of the poor, but the reality is bending more to towards the former. Therefore the court has ordered that the lands acquired in Shaberi, Asadullapur and Devla villages to be returned to the farmers. The court went further to order that the farmers would also be returned with 10% of the lands where construction work had started. They would also be getting increased compensations on the land already acquired from the farmers. According to some resources, these orders would be very disturbing for the real estate companies and the final buyers of the developed projects.

Some of these lands have already been developed by various builders and also construction has been going on at full pace at some multi storey complexes.

DLF stocks fall:

The stocks and shares of the major realty firm of the country, DLF fell round 2% as a consequence of the statement by the stock market regulator, the Securities and Exchange Board of India (SEBI). The board has said that it would examine the allegations made by a Delhi based businessman against the realty firm. The capital market regulator has agreed to investigate the whole matter after the allegations of the Delhi businessman against DLF Sudipti Estates Pvt Ltd.

According to a real estate consultant, the company’s operations may not experience any impact due to the SEBI’s investigations but its goodwill can surely be impacted in the market. The businessman has accused the top realty firm for deceiving him for Rs. 34 crores. According to a draft prospectus filed by DLF for its public issue, it had included Sudipti as an associate company but in the later version of the prospectus of 2007, it wasn’t included.

If the businessman is to be believed than the Sudipti, DLF home developers, DLF estate developers are all sister concerns and part of the same group but DLF alleges that it is not so and both are managed by different persons. The Delhi High Court has directed the regulator to investigate the matter and subsequently pass an order within three months.

Real estate suffers with lacks of returns

Investment in real estate has always been famous in India as most the people here prefer to invest their money by purchasing property. The real estate sector is struggling to curb issues of maintenance cost, transaction and lack of returns. The people who are smart enough, invest in property and with the increasing rates of property the middle class range of people who had bought property when the prices were low have now become rich overnight. However, now the builder get higher amount of returns than the investors. Therefore, the real estate is palpable hence it is regarded as a good investment.

There is a misconception in the minds of people that realty sectors don’t give returns like that of equity. It is a known fact that if you property immediately after buying, you will not get negative returns. The negative returns are a consequence of cost spent in brokerage of stamp duty and difference of prices between the seller and the buyer. Majority of people don’t trade in real estate and prefer to hold it for a longer duration in order to get maximum returns. The real estate returns varies over a cyclical period of time. The best way to get maximum returns is allocation of assets.

Real estate investment is a safe bet

Real estate in India is making huge business profits for the developers and investors. For our previous generations it was like dream to buy a house for them. The ones who were having roof above their heads were considered to be settled in life than of those who did not had their own house. But nowadays EMI and home loans has made it simple and easier for people to buy their own house. Property is the first thing in which the middle class people plan to invest in. The majority of population in India is comprised of middle class people and their first dream is to purchase a house of their own.

In a report published by Price water house cooper, the popularity of real estate sector of India has been highlighted in report of Emerging trends in Asia pacific 2011. Among the construction business cities like Punjab, Haryana, Agra, Madhya Pradesh and Jodhpur are in the top preferences of the real estate investors. The 11th five plan provides high growth opportunity for the real estate sector as by the end of this plan India would be facing shortage of over 26.53 million houses. Leading company TATA has introduced their new home project which is named as Nano homes. The project aims at building around 32,000 houses in the rural areas.

5. Property firms like Unitech, DLF and DB realty hit hard:

Mumbai: Indian real estate sector, which helps in the country’s economic upsurge, is facing difficult times as the high interest rates push up the cost of home loans. Successive hike in the interest rates have made the buyers delay their purchase in hope of a fall in the interest rates. This situation has led to a knock off on the country’s top property firms like DB Realty, Unitech and DLF.

Stcks of these firms have already hit year low this month. Also the realty index in the BSE, (Bombay Stock Exchange) have halved in terms of value from the figure in the last year and also some other firms have seen their share price plunge after the news of loans for bribe scandal which emerged in last October. According to the property analysts the situation is not quite rosy for the property firms as another hike is expected before the end of the year in fuel, labor costs and raw material costs. According to Mr. N Sridhar, group director, DB Realty, rising interest rates, input costs and delayed approvals have resulted in a slowdown in this sector. According to Mr. Pramod, Ambit Capital, developers will have to start reducing the unrealistically high prices to boost the sales again.

Real estate can only be revived by section 25 of the Indian Companies Act,1956:

Bangalore: Building law abiding apartments and sanctions by the authorities is passé. The customers expected such terms and conditions by the seller in the agreement for years. But now things have changed and according to most, for the better. Now, it is the time when the customers not only look for such terms in the contract but they also expect transparency in the project by the developer. It is the time when the customers are well aware of their rights conferred upon them by the law. But unfortunately the sellers are not in a position to offer much transparency in the deals.
The model which is currently prevailing in the real estate market of India is that sellers or the real estate developers collect money from the buyers in form of down payments from banks or other financial institutions against loans. This way the developer collects loads of public funds and also the monthly installments paid by the buyer even before the first brick is laid on the so called “project”. This way the real estate agents make good money for new luxury cars, swanky mobile phones and fully paid luxury holidays. Things like large sized sample flat or badly drafted agreements are the things which would directly go against such real estate agents. Now is the time when the country needs an authority or a law to govern such development in the real estate sector and punish the culprits. Now is the time when we need a holistic real estate development rather than a different formula of each real estate agent.

Realty to rise, not affected by boom

New Delhi: The real estate sector is expected to rise and not get affected by the global slowdown, but it won’t experience the same appreciation it has experienced in the past due to many significant factors. According to Mr. Anuj Puri, chairman and country head, Jones Lang LaSelle India, the middle income residential group is a good investment option. For the long-term investors the residential real estate sector is a profitable possession. But he advises that the investors shall not plough money in the early stages of project as they might face delays in the later stage. So the safest area to invest is the already developed projects. The real estate experts’ is of the opinion that the economic slowdown may leave an impact on the Indian real estate market but that won’t be a severe one.

The impact of the global slowdown can however be felt in the IT sector which may result into less demand for office space. According to Morgan Stanley, even if the global slowdown affects the developed countries by a percent, the Indian economy will experience around 6.5-7 % growth in 2011-2012 as compared to the original 7.8%. Even in the worst case the Indian economy will experience a growth of at least 7%.

2. Property Discounts are in as demand drops day by day:

Bangalore: Developers in the city are not publicly admitting this fact but the truth of the matter is that demand is lowering day by day and as a result the developers are giving discounts and freebies to the potential buyers in order to persuade them. In Bangalore the discounts are said to be around 8-15 % whereas in Mumbai where demand is much lesser the discounts are around 20-30 % on the listed price. A consultant at a q estate firm, Mars Realty confirmed that the discounts are being offered in the projects ranging from 70 lakhs- 1 crore. Century real estate has been offering great discounts to those who make accelerated payments for its luxury apartment project, Renata at Richmond road. The price was listed at Rs. 17,000 per sq ft, but it is said that buyers got the same land for around Rs. 15,000 per sq ft which is much less than the quoted price.

Lodha developers, a Mumbai based developers is offering a free trip to Singapore for the first forty people buying their project named Casa Rio at Dombivilli. In Mumbai some areas have experienced a steep downfall. Rustomjee had two residential project at Bandra, and amazingly one was sold earlier at Rs. 26,000 sq ft and the newer one is selling at Rs. 15,500 per sq ft. Another developer is offering a 25% flat discount to the buyer who gives 100% down payment.

1. High loan rates are affecting housing property in North India:

Chandigarh: Property prices in Punjab, Chandigarh and Haryana have experienced a fall up to 15% in last few months. Rising loan rates are seriously affecting the real estate market in North India as the otherwise booming real estate market experienced a fall up to 15% in last couple of months. The fall can be seen as a direct consequence of high lending rates as buyers could not avail loan easily because of the high return rate which is rising consistently. The private financers are the ones who are suffering the most in this situation as the buyers are delaying their decision of purchase due to the high rates of loan. The joint general manager of HDFC, Mr. P.C Srivastava emphasized that the rates of property has come down in some parts of northern India in recent months and the same could drop to some more extent.
The lending rates have increased by around 2% in the last year as a result of tight monetary policy adopted by the Reserve Bank of India (RBI). The real estate consultants pointed out that change in this direction can be seen from the fact that the high value properties have not experienced a good sale in the last year and have almost come to a halt. Now to face this situation and allure buyers many real estate agents have started a new policy of bearing the house loans of the buyers until the possession is handed over to them.

Cash crises faced by Indian real estate

The real estate sector of India who was once regarded as the high risk taking investment sector is facing liquidity crises and is going through a low phase in terms of interests’ rates, escalating commodity prices, inflation and interest rates. Many midsized and small Indian property sects are facing default risks as the debt of the sector is very high. In September 2005 the debt was of $ 3.8bn and now in the month of July it has increased up to $ 24.3bn which is almost seven times of the previous debt. One of the reasons of this problem could be the delay of projects and discounting properties by the major developers in the real estate sector. An analyst of MF global says that it is one of the nastiest liquidity crises the world has faced till now.
The biggest developer DLF by selling its non-core assets like land and hotels is trying hard to raise as much as Rs 100bn. According to a data given by Bloomberg the debt burden of DLF moved up to $4.4bn. In the end of March DLF paid up to $25.9bn in interests. Saurabh chawla, DLF’s executive finance director said that the living environment of people has become very different. Moderation in demand will bring change in costs and cost of capital mortgages. Many major developers are facing trouble in seeking new buyers and also in completion of products.

Real estate firms blaming rising costs for low performance:

It is a fact that most of the major real estate firms have experienced a downfall in the net profit in the June quarter. The management has been blaming the operational environment including high input costs and increased interest rates as the major causes for the poor performance. According to figures the net profit of DLF ltd. decreased by 13 %, HDIL by 21.5 %, Parsvnath Developers by 19 %, Unitech Ltd. by 45 % and DB Realty by 33.5 %.

According to real estate analysts the construction costs have gone up by 30-40 in the very first quarter of 2011-12. This hike can be attributed to increase in the cost of labour and raw materials. The borrowing costs of the developers have been increased a s a result of the increase in lending rates by the central bank. According to Suman Memani, real estate analyst, PINC research, the developers are most likely to experience lower profits in the second quarter due to rising interest costs and slow sales growth. The first quarter’s revenue is a mixed story, wherein DLF and HDIL have showed profits in the year on sales while the other major real estate firms showed a dip in net profits. Also the deliveries by these firms were not upto the mark.

Increasing rates will affect not only the customer but auto and real estate agents too:

Mumbai: While affecting individual buyers, the increased rates are affecting the auto and real estate sectors too where the demand is directly proportional to the cost of funds for individuals. A 50 basis point increase will consequently change the equated monthly installment on a 20 year home loan of Rs. 20 lakh by Rs. 342.

Now when the inflation is rising close to double digit, there are chances that it can further rise in future. Whereas some bond dealers are of the view that the decision by the US Fed to keep the rates near zero and considering the sustained slowdown in the west, Reserve Bank of India (RBI) may alternatively choose to pause. This view of the government is clearly reflected in the prices of the government bonds.

Banks these fays which are lending at 8% in the interbank market are investing in a 10 year bond with a yield of 8.2%. A uniform yield clearly indicates that the banks are expecting a slowdown. As the banks are uncertain with regard to the demand for loans as a result they are not increasing long term deposit rates which means the interest for the short as well as long term are at par.

Hotels chain Hilton to set up 50 new hotels in India:

New Delhi: Lenny Menezes, chairman of the Hilton Worldwide in India is facing a tough task these days; he has been assigned with the job of opening new hotel in India in every 45 days. He has been assigned this job to benefit the most of the booming hospitality sector in the country and to expand the Hilton Worldwide in India. Around hundreds of hotels with a total of around 1, 55,000 rooms among which 65,00 will be branded ones will be added in the next five years. But he feels that this figure won’t be able to satisfy the growing demand and will be falling short.

Hilton itself will be setting up 50 new hotels in the country and 6 hotels are currently operational in New Delhi, Chennai and Mumbai. Whereas Hilton Garden Inn and Hilton already are launched in the country, the company is all set to launch its new luxury brands Waldorf Astoria and Conrad along with upscale brand Doubletree and the mid market, Hampton. According to Menezes, the mid scale brands Hampton Hotels and Hilton Garden Inn will expand the growth of the company in India specifically in the secondary and tertiary cities. Hilton hotels will operate through a management contract route.

SAT to take up plea of Sahara against SEBI on Tuesday:

Mumbai: Petitions filed by two Sahara group companies, Sahara India Real Estate and Sahara Housing Investment Corp. challenging Securities and Exchange Board of India (SEBI) order which was passed against them , will come up at the Securities Appellate Tribunal (SAT) on Tuesday. The union ministry of corporate affairs will also appear as a party in the aforesaid case. The tribunal is expected to hear the matter on a continuous basis as Supreme Court has already ordered that the petition be disposed within five weeks and a week has already passed.

According to sources Sr. Advocate Arvind P Datar is appearing for SEBI, while DSK Legal Advisors are expected to represent Sahara. On July 15, the apex court had already directed the Sahara group to approach the SAT to appeal against SEBI, according to the order the group had to return money collected by issuing debentures to the public. The court had given three weeks to the Sahara group to appeal against the order and thereafter five weeks to the tribunal to pass an order. SEBI found the scheme of the Sahara group illegal and had ordered to return at least Rs. 6,588 crore collected under their debenture schemes to investors. The 99 page order of SEBI by Sh. M.K. Abraham found the Sahara group promoter and three directors jointly liable for the alleged scheme and was directed to make the refunds.

Financial uncertainties result into real estate sector woes:

Mumbai/New Delhi/Bangalore: the global financial turmoil have downgraded the US rating and also left an impact on Indian real estate sector by putting a freeze on the real estate office rentals as well as on foreign capital. While India’s real estate market is handling its own internal issues like soaring rents, high property prices, banks restricting lending, etc there arises external issues creating a havoc over the Indian real estate sector.

According to Mr. Chintan Patel, partner real estate practice, Ernst and Young, the impact of the US and Europe economy on Indian real estate sector can be related to the panic experienced during the first days of the Lehman Brothers Holdings Inc. Bankruptcy which took place in 2008-09 slowdown. The only factor which lies in favor of the market is that due to this impact the affordable housing demand won’t be affected much unlike the demand for luxurious projects. The earnings in the June quarter of many developers have been dismal, most of it in Mumbai and the National Capital Region (NCR). DLF has a debt of Rs. 21,500 crore, Unitech Ltd. of Rs. 5000 crore, Emaar MGF Ltd. of Rs. 4000 crore and Parsvanath Developers Ltd. Rs. 1,200 crore.

Quest to find actual price of property

It’s a challenge for real estate agents and buyers to set up the actual price of the property. The agents’ advice people who want to buy property to believe in the data record in respect to the property. The selling of a property is determined by its price only, therefore the price of the house is the most important factor responsible for its mortgage but pricing a house correctly is a difficult task for the real estate agents. Experts believe that the retails sell the property by previous price of the house only. Nowadays there is lot of competition in the market and between the agents and investors. Their main motive is to make large transactions in short period of time.

The prices of homes are not affected by short sale in market but on the other hand foreclosures have large impact on the market. It’s not just about pricing homes at correct price. The home values in many markets have been dragged down by short sales. In urban areas of developing countries people price their homes at a very high rate than of the market. The condition of the property is very important aspect of the real estate industry, and the impact of the house is determined by the present condition of the property.

Real estate developer Omaxe expects net debt to fall:

Mumbai: The real estate developer, Omaxe Ltd. has expected that their dues will fall to 8.80-8.90 billion rupees by March’2012 as it has planned to repay the debts from its operations. According to Sumit Arora, Vice President, investor and strategic relations, Omaxe Ltd, effectively they will be paying off around 200-250 crores in the next nine months. Till June end the company’s net debt was around Rs. 10.50 billion. The company also has a gross debt of Rs. 14.77 billion which it expects to cut to Rs. 12.50 billion by the end of this very financial year.

In April-June the sales were around 2.62 million square feet, whereas the sales in July wasn’t much aggressive, however he still expects it to rise to 2.2-2.6 million square ft. He also said that many of their projects are awaiting approval from the authorities, once they get approved, they’ll help a long way to clear debts. For the upcoming financial year the company is expecting to sell 9-10 million square ft as compared to 9.76 in the previous financial year. An amazing irony lies in the fact that property prices have more than doubled over the past 18 months in the country’s major cities, but sales have experienced a major downfall during this period as a result of high prices and high interests on loans.

Godrej and Jet Airways sign a deal for development of Plots in BKC, Mumbai:

Mumbai, Maharashtra- Godrej Properties Limited, the real estate leg of the Godrej group recently announced that it has entered into a development agreement with Jet airways limited, to develop its property situated at Bandra Kurla Complex (BKC) in Mumbai. Godrej Properties Limited (GPL) is planning to develop a one million square feet office building expected to be completed in next three years. GPL will take an amount of Rs. 360 crores debt obligation which Jet airways has on the property and consequently will pay a sum of Rs. 135 crores as a compensation for the expenses incurred by them. Also GPL has agreed over 1,60,000 sq ft or carpet area Jet for the development costs. This space will be utilized to develop a hi-tech new headquarters for Jet airways. It has been unanimously that both the parties will share the profits equally.

It is pretty obvious looking at the situation that GPL will develop the building to its level best including all the facilities to ensure that highest standards of design and construction. A leading architectural firm has been hired which has apparently designed the world’s tallest building in Dubai, Burj Khalifa. The building so proposed is seen as a leading commercial building in future in whole India.

A new bill on land acquisition:

As a response to the last year farmers agitation over the faulty land acquisitions and poor compensations as in the Tata-Singur failure in West Bengal, Posco in Orissa and the recent one going on in Noida over the UP government land acquisitions- the department of government concerned, which is the ministry of rural development is planning to introduce a new bill as a replacement to the older Land Acquisition Bill, 1894. It has drafted the new bill pertaining to land acquisitions by the name of National Land Acquisition and Rehabilitation and Resettlement Bill, 2011 and has put it in the public opinion till 31^st August for comments. If this new bill is passed it will replace the earlier bill. This draft has come up with specific provisions but there’s no standardization of land prices which may lead to lesser compensations than what is deserved.

Prodipta Sen, VP, Alpha Gcorp, a Delhi-based real estate firm says that though the bill is a first step towards regularizing land acquisition but government has to do more in order to ensure checks and balances for fair evaluation of the land price. The basic drawback of the proposed bill is that there is no standardization on estimating the property value.

JP Iscon Plans Gujarat’s Biggest Mall

JP Iscon, an Ahmedabad based real estate developer announced plans to construct a mall with over one million square feet of retail space, the biggest in Gujarat so far. It is expected to be operational in two years. Sources say they have acquired land in Ahmedbad.
JP Iscon is known to have developed over 35 lakh square feet of residential and commercial space in Gujarat. Though the location is not yet decided, it could be in suburban Ahmedabad, located either near South Bopal or Gota, locations close to Ahmedabad on the Sarkhej Gandhinagar Highway.

JP Iscon already operates a mall in Surat and Ahmedabad, with two in Rajkot. The success at these malls seems to have spurred the developer to go in for the mega project. According to the developers, retail space with an area of 1200 sq. ft sees a business of Rs. 2500 to Rs. 3000 per square feet per month. Ahmedabad is a promising destination for malls with a growth rate of around 20 percent according to the developers.

London’s Trinity Capital PLC exits Bandra Project

Trinity Capital PLC is in the news again. First it sold its holdings worth Rs. 90.3 crores in Mumbai based Keystone Realtors and now it has again sold its stake back to Keystone in a Bandra based housing project. Trinity committed an investment of 20.5 million pounds to Rustomjee Constructions Pvt Ltd but finally invested only 3.6 million pounds through its Mauritius unit TC15. TC15 had a 49% holding in Rustomjee, balance held by the developer. Trinity holds a 45% stake in TC15, the rest held by SachsenFonds Holdings GmbH of Germany through Immobilien II. Trinity hopes to gain 2 million pounds from this sale. The reason given for the exit is that the project is not making any progress with the promoter still negotiating agreements with housing societies.

While Trinity has 45 per cent stake in TC15, the rest is held by German investor SachsenFonds Holdings GmbH, through Immobilien II. Trinity Capital is expected to get £2 million ($3.27 million) from this sale.SachsenFond’s case in a Mauritius Court of Civil Appeal against Trinity Capital have been dismissed.

Tata Realty and M3M Developers Compete to Acquire DLF’s Gurgaon Plot For Sale At Rs. 400 Crore.

As a part of its plans to sell off developed assets and hotel business in order to generate Rs. 7000 crores in two years to address debt issues, DLF, the prime real estate company of India, announced its intention to sell off a 27.4 acre plot in Gurgaon at an asking price of Rs. 400 crore. It has already sold off 400 plots in Garden City in Gurgaon’s sector 91-92. It plans to sell two IT buildings in Pune and Noida as part of its fund raising plan. It has a gigantic debt burden of Rs. 24000 crores. The divestment is part of its drive to reduce risks associated with developing residential complexes and getting rid of non-core assets.

The plot in question carries all necessary permissions and approvals to set up a residential project, the built space being 2 million sq. ft. located in sector 70A, close to the new southern peripheral road in Gurgaon, connecting National Highway 8 with MG Road.

M3M Developers and Tata Realty are vying with one another to acquire the land at Rs. 2000 per sq. ft.

DLF has shows a 12.81 % decline in consolidated net profit for the quarter ended June 30, amounting to Rs. 358.36 crores. The company held high input costs and escalating interest rates responsible for the lackluster performance. However, revenues increased to Rs. 2503 crores compared to previous year’s figures of Rs. 2161 crores.

SEBI to Scrutinise Alternate Investment Funds

SEBI, the prime regulator of the Indian capital market proposes to bring about radical changes in the way private capital funds are formed and used in local investments. This includes private equity and real estate funds. They propose to categorise the funds in nine categories covering social ventures, SME, PIPE, real estate, venture capital funds, PE funds, debt funds, infrastructure funds, social venture funds and strategy funds. The proposal seeks to raise the investment bar in PMS to Rs. 25 lakhs and in other alternate investment funds to Rs. 1 crore to prevent risky investments. There is no clarification on the future of private equity investments in Indian firms listed on the stock exchange. Funds need to be close-ended with a minimum tenure of 5 years to be fixed at the time of registration, with a permissible extension of 2 years when approved by three-fourths of the beneficiary.

An alternate investment fund cannot change its category after registration and paying Rs. 6 lakhs in all, including Rs. 1 lakh as the application fee.

The objective is to create a new regulatory framework for all private capital pools to channel them without risk and in a regulated manner.

An Infrastructure Fund will have to invest at least two-thirds in equity or equity linked instruments of infrastructure companies or special purpose vehicles of infrastructure projects. It is allowed to invest one third of the corpus in debt instruments

Real Estate Funds will have to invest 75% of the corpus in real estate projects or constructed properties. They can also invest in SPVs involved in real estate projects and 25% in allied real estate sectors.

SEBI is waiting for opinions of interested parties to proceed forward with the proposed changes.

In Tier II and III cities Hypermarkets Will Grab The Maximum Retail Real Estate Space

FDIs have entered the Indian retail sector in a big way, skyrocketing demand for real estate space, adding fuel to the already feverish pace at which this sector is growing. Unlike top real estate projects that are confined to metros, retail penetrates even tier II and III cities that have low development of such retail centers. Growth in these cities is expected to reach 35% in the next three years. Real estate developers in these cities are bound to get on to the bandwagon and push retail real estate space.

The giants in this segment like Wal-Mart, Big Bazar and Tesco will account for the highest space in these cities. They are likely to focus on cities with a population of more than a million in the first two phases, taking into account logistics and infrastructure.

This will have a decided influence on the cost of the land, the main component in retail real estate. Prices are expected to go up and it remains to be seen whether developers focus on this or the more lucrative residential projects that have an equally high demand, if not better. These giants will absorb ailing retail players and then when they expand, land prices should really climb by about 30% in three years’ time in the face of more demand.

CHD City, Karnal, to Expand on 23 More Acres of Land

CHD city is the pride of CHD Developers Ltd and offers a far better living space and life style to residents of the township. The township is spread over 123 acres.
According to Mr Gaurav Mittal, Managing Director, they will develop an additional 23 acres of plotted development and will go on expanding till they reach the targeted figure of 300 acres.
The township already boasts world class facilities and the ultimate in luxury facilities for its residents, with special emphasis on landscaping and architecture. It has parks, schools, health care centers, entertainment and virtually all requisites of a township with easy access. The center of attraction is the 5 acres of Central Park with water bodies and lush foliage. A temple is under construction to meet the spiritual needs of residents.

This proposed expansion will give residents of Karnal to buy into some exotic property. The township also plans to set up a modern Millenium School for high quality education. Also planned is a 200 bed multispeciality hospital and a food court. The announcement of expansion offers an opportunity to be a part of this wonderful township.

HCC Infrastructure to turn over 14.5% of its stake to US Based Xander Group

HCC Infrastructure is a major civil engineering and Construction Company and the news that it plans to let in the US based Xander Group for Rs. 240 crores, giving it a 14.5 % stake, comes as a minor surprise but may be part of the company’s overall expansion plans. For Xander this is the second deal in India, the first being a Rs. 400 crore investment in Sadbhav Infrastrucure Project, involved in roads and highway development. Xander is known to invest heavily in hospitality, retail, real estate and infrastructure and this investment, for them, is in line with their vision of investing USD 1.8 billion in equity across India, in these sectors.
HCC is stretched with investments of Rs. 650 crores and will need additional fund injections to the tune of Rs. 350 crores and this move may be one in the right direction. It already holds six National Highway Authority of India concessions totaling Rs. 5500 crores. Five are toll roads and one is an annuity project.

India is on a development spree, building up better infrastructure and roads and will need USD 1.7 trillion in this decade according to Goldman Sachs. Xander and other similar groups are moving actively into India to take advantage of this thrust sector.

real estate deal

Property purchases for new buyers in the whole country will become more transparent with the signing of an historic agreement between the Confederation of Real Estate Developers Association of India (CREDAI) and the National Association of Realtors at the third annual convention of NAR India held in Hyderabad in the last week of July. Andhra Pradesh Realtors Association, the local arm of the national body of realtors, organized the convention at HICC.

Mr P S N Rao, chairman of NAR-India, laid special emphasis on the importance of brokers or real estate agents who are now more sophisticated and educated and will play a more important role in helping property buyers. With over 13000 members in 20 states, NAR India is set to play a key role in the coming years with the agreement now in place. The code of conduct will make deals more transparent for buyers and brokers will be trained to provide a uniformly high level of services, according to Mr Lalit Kumar Jain, president of CREDAI. Buyers can expect clearances of all papers within three weeks through a proposed single window clearance system. The agreement paves the way for improved quality of services from the real estate agents with prospective customers placing more trust and confidence in them.

Middle Level Developers Having A Good Time Buying Distressed Projects

The recent economic downturn and global recession led to many builders abandoning their projects midway. They were in a situation where they could simply not proceed. Such unfinished projects or land lying unused are up for grabs and middle level builders are having a good time buying such distressed projects at lower valuations. The small builders are the hardest hit and the recent hike by RBI does nothing to give them hope.

It is likely that small builders will sell off more such unfinished buildings and land. Banks have tightened the screws still further with stricter terms. Such builders simply do not have the money to complete their projects and have no buyers for their commercial spaces or residential complexes.

For cash heavy middle level builders this comes as a windfall as they have access to a number of prime properties at discounts of 25 to 30% of the current market values. ]

Patel Realty India Ltd, the Salarpuria Sattva Group and Ajmera Realty and Infrastructure Ltd are said to be very active in acquiring such properties. They are advantageously placed since the properties have clear titles, enabling them to get off to a running start. Such deals are in active progress in Mumbai, Bengaluru and even in smaller cities like Pune and Ahmedabad.

AIG To Divest from Indian Realty for USD 450 million

AIG Global Real Estate (AIG GRE) is said to be in talks to divest its holdings in two Projects in Bangalore and will gain about Rs. 2000 crores from the deal. AIG GRE is a global group with total investments ranging USD 9.4 billion in various real estate projects around the world.

The AIG-GRE group jointly with RMZ , a Bangalore based company, invested a sum of USD 350 million in Bangalore, Kolkata and Hyderabad through a SPV. Their aim was to promote commercial buildings in metros and also enter the hoteliering area. The downturn in global real estate led to reconsiderations.

Negotiations are now going on for the bid invited for its stake in the projects. AIG-GRE expects USD 450 million or close to Rs. 2000 crores. When the deal is finalized, it will mean the exit of the global conglomerate from India. RMZ has offered to buy out AIG-GRE’s stake in Hyderabad and Kolkata projects but so far no one from AIG has given a response to the offer. Earlier, RMZ had acquired AIG-GRE’s Bangalore SPV stake. It seems AIG is waiting for other offers in an attempt to tip the negotiations in its favour with RMZ. Officials of RMZ did not confirm so we are left guessing about the actual status.

Godrej Properties announces New Towers in Godrej Garden City, Ahmedabad

The launch of new towers in the Godrej Garden City (GGC) project has been announced by Godrej Properties Ltd (GPL) which is the real estate subsidiary of the Godrej Group. Till date almost 2,500 apartments housed within the project located in Ahmedabad have been sold off. With the launch of this new phase GPL will be offering two/three BHK apartments which will be equipped with modern amenities. The sizes of the partments will range from 1,270 square feet to 1,729 square feet.

Pirojsha Godrej the executive director of GPL said that the company was very upbeat about announcing the launch of the new phase of the Godrej Garden City township project. The executive director further added that already about 2500 apartments has been sold and GPL plans to continue this momentum in order to provide the residents of Godrej Garden City a world class self-sufficient township. On completion Godrej Garden City will have over 13,000 apartments and villas. GPL also plans to create transport, education, healthcare, recreation, hospitality, retail and banking facilities within the project. In order to make Godrej Garden City a fully self-sufficient township GPL plans to add important civic facilities as well as public utilities. World-renowned architects, Skidmore, Owings and Merrill (SOM) have created the master plan of Godrej Garden City.

Gurgaon based developer AlphaG: Corp launches Phase III of GurgaonOne 84

The Phase III of GurgaonOne 84 residential project has been launched by the Gurgaon-based real estate developer Alpha G:Corp Development (Alpha G:Corp) which is also a partner of Morgan Stanley. Spread over an area of around 12.5 acres the project will be developed in Sector 84 of New Gurgaon.

Mr. S K Sayal the CEO and director of Alpha G:Corp said that within the first two days of its launch the Phase III of GurgaonOne 84 project has been sold out. He admitted that the company was overwhelmed by this demand in Gurgaon which it did not anticipate. He attributed the high brand presence because of the success of its earlier project GurgaonOne in Sector 22 which witnessed a three-fold appreciation in the last three years. According to Mr. Sayal this was the reason why GurgaonOne 84 got sold out so fast.

ARCOP of Montreal, Canada has designed the GurgaonOne 84 project which will have seven independent towers. Each tower will have more than 19 floors which will have combinations of two, three and four-bedroom apartments. The carpet area of these apartments will range from 1,181 to 3,194 sq ft. There will be a total of 668 apartments in the said projects which is divided into four phases. The first two phases were launched in February. There were a total of 439 apartments and the base price was Rs 3,420 per sq ft.

Unitech coming up with office cum retail complex in Gurgaon

The Nirvana Country 2 project of Unitech which is a 100 acre integrated township located in Sector 71,72 Gurgaon will now have a commercial complex named Nirvana Courtyard 2 which will be housed within the project. Nirvana Courtyard 2 will have readymade office suits with sizes ranging from 486 square feet onwards. These office suits will have facilities like false ceiling and lighting, split AC and round-the-clock power back-up. Apart from that Nirvana Courtyard 2 will also have retail options like health clubs, beauty clinics, restaurants with open terrace, cafes and boutiques etc and sizes will range from 300 square feet onwards.

Mr. Nagaraju Routhu the vice-president (corporate planning) of Unitech said that the Nirvana Courtyard 2 office block will have spacious lobbies as well as common areas and these will offer independent access. All the suits will offer high visibility and will have split ACs along with 24x7 power back-up. He said that being a gated community the Nirvana Courtyard 2 office block is also well connected to NH-8 and Golf Course extension. Moreover the Nirvana Country 2 integrated township project enjoys the advantage of being located near world-class schools and hospitals like DPS, Heritage, Max and Apollo etc. The township will also have in-house facilities like clubhouses, schools, medical centres, shopping arcades and facilities for sporting activities.

DLF, Unitech’s projects in NCR delayed due to slump

A number of real estate projects launched between 2005 and 2007 in the National Capital Region (NCR) have not been completed yet. Some of these are Magnolias and Belaire in Gurgaon (launched by DLF), Exotica in Gurgaon and Palacia and Privilege at Greater Noida (launched by Parsvnath). Similarly two other projects namely Escape and The Close in Gurgaon launched by Unitech are also getting delayed. When asked to comment on delayed projects a DLF spokesperson said that the company was striving to complete its two delayed projects by this year end.

On the other hand an official of Parsvnath developers said that the company is focusing on completing the two projects located in Greater Noida by the end of next year. While talking to DNA the same official said that although there were delays in completing its Exotica project in Gurgaon possessions in the first two phases have been already completed. He said that at present the company is in the process of offering possession in the third phase and will begin to provide possessions in the fourth phase in six months.

A spokesperson of Unitech disclosed that the company has already offered possession of The Close project and possession of The Escape project has also started. Apart from other factors the 2008-09 slowdown is being cited by developers as the reason for project delays.

Tata to invest 1000 crore in real estate

Affordable homes will be developed across India by Tata Housing Development Company. Up to Rs 3,000 crore would be invested by the company by next fiscal for this purpose. Already five affordable housing projects are under Tata Housing Development Company and by next fiscal another 7 to 8 projects are on the anvil which the company will launch shortly. A subsidiary named ‘Smart Value Homes’ has been formed by Tata Housing and the company plans to develop affordable houses under this subsidiary. The prices of affordable houses will range from Rs 5 lakh to Rs 35 lakh.
Mr. Brotin Banerjee, the managing director of Tata Housing Development Company said that an amount of Rs 2500 to Rs 3000 crore will be invested by the company in 2011-12 for the development of existing as well as new affordable housing projects. Mr. Banerjee said that three projects with a total area (saleable) of 10-12 million sq ft are being developed by Smart Value Homes in Mumbai, Pune and Chennai respectively.
He said that three more projects are on the anvil in Mumbai, Bangalore and Ahmedabad. These will begin during the first quarter of 2011-12. The company is also planning to start more projects in other parts of India.

Home loan declines in India

With the increasing housing problems and taking it seriously State Bank of India decide to launch new home loan policy .The increasing demand of home loans made State Bank of India and seeing the inability of borrowers to repay loans on time. State Bank of India decided to launch new home loan policy. The bank is considering increasing rate of interest on home loans that would surely affect borrowers. The demand of home loans has surely risen up high. The bank has decided to keep interest of 8.5 till a loan of Rs 5 lakh and 9.25 upto loan of Rs 20 lakh.

The withdrawal of teaser loans has resulted in slight declination in application of home loans. The rising property prices also led the demand of housing loans go down. According to data issued by State Bank of India it is evident that after the interest rates have been made high and withdrawal of teaser loans has brought slight moderation in home loans demand. The inability to clear loan on time for longer periods becomes a serious problem for banks. Therefore now Banks will be reviewing its home loans policies periodically. One would have to wait to get property loans as it can not be given instantly now and high rate of interest attached with it.

India Trying to Build Consensus on Liberalising FDI in Retail

India is looking to make its position strong in promoting foreign direct investment in country. Finance Minister said in a press conference in Washington to maximize liberalization in defence and retail sector. In this direction finance Minister is trying to build up a unanimous policy to increase the foreign direct investment. The defence minister wants the FDI to be restricted to just 49%.There exists differences within the government on this issue. Other ministries have also opposed this decision from Finance Minister. The policy is under discussion and any decision would be taken after the final discussion completed with in the government.

Taking this issue Mukherjee will further have discussion with US treasury secretary beginning from tomorrow. The US wants new opening of industries in Indian markets and is of the view that this process should go on realizing each other potentialities and capabilities. The future discussion can be productive when tow countries jointly work together for it. The Indian market is full of potentialities and US is waiting for the nest move from India on retail sector. It is still unclear that at what percent will FDI be allowed to work on. Many companies have welcomes this step where as there are companies who have expressed their displeasure on this issue.

Govt May Approve Amendments to Benami Property Law Today

Government is most likely to review laws on benami property and most probably go for amendment to show its concerned attitude on this issue. The amendment will provide government with the right to take over any land that is declared as benaami or it belongs to person who has not paid property tax properly. Earlier a law related to this was passed by Parliament in 1988 but it never into implementation .The newly formulated law would be enacted strictly to stop generation of black money. This law will authorize government to seize any illegal property and bring it in use into development related work.

The following act has made compulsory that all property deals will be certified by CA.It will surely reduce the amount of black money generated by property owners. This law will directly benefit government and increase its annual revenue. The real business gives rise to ample amount of black money. But with the coming into light of 2G spectrum scandal possibilities of black money exist in other sectors also. Therefore government was forced to stop the property theft and take over bennami property for various development schemes. This law if properly implemented will reduce the cases of black money in country.

CapitaMalls Asia to invest Rs 1,800 crore in India

Famous construction company CapitaMalls Asia has decided to invest Rs 1,800 crore to increase its business in India. In the next three years company will fund the malls that are still under construction with new seven new malls across the country. Kevin Chee, CEO and head of Capitamalls Asia said in his recent interview that company has joined hands with two Indian based construction companies. The Bangalore based Prestige Estate Projects Ltd will after projects operational in South and Advanced India Projects Ltd will work in the North. Both these companies will work together with CapitaMalls Asia.

Company has already owned some big malls in India like Forum Value Mall in Bangalore and The Celebration Mall in Udaipur. Apart from these malls seven other malls are under construction in Bangalore, Mangalore, Hyderabad, Mysore, Kochi, Jalandhar and Nagpur. These seven malls will be completed between 2012 and 2013.The company has owned total 92 Malls across five countries and more than half that is 53 of them are in China. The property of this company is estimated to be around $23.7 million with a total constructing space of 73.4 million sq ft. The revenue contribution by Indian malls is approximately2.1 percent of total property and a space of 9.8 percent.

Acron Infra Projects Developing Residential Complex at Pune

Acron Infra Projects which is Mumbai based construction company is building up a sky touching residential complex at Karvenagar located in the center of Pune. Amar J Britto who is director of Acron Group told that the cost of the project is Rs 800 crore and it will be completed in six steps. The project work is already under progress with 25 storey buildings will be made ready with in a time period of 18 months. The company has asset a target of developing total 800 apartments in first step. Each apartment will be consisting of two bedroom covering an area of 900 sq feet. The interested customers have to pay around 40 to 50 lakhs to book apartment here.

The project has given home buyers a relaxing apartment with all basic facilities. The eco friendly environment will save people from city pollution. Home buyers belong upper middle class can easily afford these apartments. Acron Group has two other branches in Goa and Bangalore with a remarkable and skilful construction management. Today Acron Group is a big name in construction world .Apart from many facilities registration and stamp duty cost has to bear by home buyer. The apartment location is in the center of city which is not less than a dream.