Consultation India - Pune, Mumbai Real Estate/ Properties Investment, Property Management Services

Source: DNA Residential sales have declined in major cities, but prices are not falling yet Pooja Sarkar & Vivek Seal. Mumbai/New Delhi There is a slowdown in the sales of residential projects. But the house-hunter is still cribbing. His complaint is that the dip in sales is not reflecting in prices. The villain here's the office-space segment. Surging prices in this segment is putting the real-estate developer under no pressure to change the pricing matrix in the residential segment. Shailesh Kanani, research analyst, Angel Broking, acknowledges that sales in residential projects are going down. "There's definitely a fall in residential sales. It has gone down 60-70% in Mumbai," he said. In Delhi, it has fallen by 50-70% on a year-on-year basis. Sales are also declining in cities like Hyderabad, Chennai and Bangalore, but to a lower extent, two analysts told DNA Money. But real-estate developers are not worried. Says Amitabh Bhattacharya, senior vice-president, O...

Source: The Economic Times Land Owners To Be Authorised To Raise Rent At Regular Intervals; Forceful Occupation & Sub-Letting Not To Be Allowed Rajat Guha NEW DELHI THE Centre is planning to amend the archaic rent control rules in a way the property owners also have a reson to smile. In the new revised rent control ACT, the land owners would be authorised to increase rent at certain intervals. A forceful occupation of the property will not be allowed. Tenants who have been sub-letting the property also will not be allowed to do so under the new law. Urban development minister Jaipal Reddy recently said the ministry would soon bring out a new regulation. "The rent control laws are very tricky and sensitive issues. They have to be sensibly dealt with. We are finalising the modalities for the revised law. for which we are in active dis-cussions with all concerned parties," a source in the Nirman Bhawan said. According to sources, the new revised Rent Control Bill is likely t...

Source: The Hindu Business Line To develop business district; payment to be made over 8 years New Delhi, March 11 In what is being billed as one of the largest land deals in the country, real estate company BPTP Group on Tuesday snapped up 95 acres of prime commercial land at Noida for Rs 5,006 crore. The land was auctioned by the Noida Authority. BPTP, which outbid three well-known developers DLF, Omaxe, and Ansal Properties and Infrastructure Ltd, to clinch the land along the Noida and Greater Noida expressway, plans to build a commercial destination that will have offices, hotel and retail space. BPTP quoted Rs 1.30 lakh per sq. m against the reserve price of Rs 77,000 per sqm. "We are very excited. This is an ambitious project. India lacks large, planned commercial district with modern concepts and quality facilities. Delhi does not have a proper business district. We will make this commercial complex a world-class destination," Mr Kabul Chawla, Managing Director and prom...

Source: DNA The President of India has recently approved several amendments in the Maharashtra Ownership of Flats Act Vinod Sampat. Mumbai On 25th February, 2008, the President of India approved several amendments in the Maharashtra Ownership of Flats (Regulation of the promotion of construction, sale, management and transfer) Act, 2005. The highlights of the amendments along with the specific section are as follows: • Builder/s will have to execute the conveyance. • Power is given to the District Deputy Registrar to act as Competent Authority: Section 5A • Power is given to Competent Authority for registration of Co-operative Society under the provisions of Maharashtra Co-operative Societies Act, 1960: Section 10(1) • It is the duty of the promoter (builder) to file with the competent authority within the prescribed period, a copy of the conveyance executed by him: Section 11(2) • If the promoter fails to execute the conveyance in favour of the co-operative society, company or as...

Source: The Hindu Home they say is where the heart is, but if one goes by all the activity in the real estate market it would be hard to keep one's heart in one place. A few years back, buying a house, flat or even a plot would simply mean that one was getting a roof over ones head. This was satisfying a very basic need, that of housing. Fast-forward to today and housing is no longer just about a roof, it's everything to do with lifestyle, building com-munities, being socially connected, making good investments etc. The real estate market has become many things and today it is a prime source of investment. The recent economic boom and the growth in the IT and BPO sectors have seen a rise in affluence levels across the board. The return of the Indian Diaspora from greener pastures has resulted in the quality of homes going up. Gated communities, villas and large format flats have now become the norm. It wouldn't be right to assume that real estate has become only about luxur...

Source: The Times of India There are no indications that investor activity has overtaken genuine buyer activity in the market, says Anuj Puri MYTH 1: There is a 'bubble' in the Indian real estate market, and it will burst soon. Fact: There is no evidence of a 'bubble'. When a bubble develops in any market, it is because prices for that particular commodity or asset have gone through the roof and beyond affordability. This is far from the case in Indian real estate. The residen�tial sector is led by endusers and it is they who dic�tate the state of the market. Neither is there a sig�nificant correlation between the state of the stock market and that of the property market. There are no indications that investor activity has overtaken genuine buyer activity. In residential, the propor�tion is approximately 80% end users and 20% in�vestors. In the commercial sector, the proportion is almost 100% end users who are taking property on lease. There are instances of overheating...

Source: The Hindu Business Line Real estate industry is the second largest provider of employment after agriculture. We urge the Finance Minister to recognise this and accord the same consideration and treatment as other industries like software. Service tax should be reduced along with the modification of entire income tax structure for real estate industry. The real estate industry has matured significantly in the last few years. Hence, the Government should consider introduction of sectoral concepts such as rental housing, and real estate investment trusts (REITs) to allow housing more easy and affordable for common man along with raising more funds. Such developments proved their worth in number of other industries. M.A. Vakil, CMD, Vakil Housing Development Corporation, Bangalore

MUMBAI: Real estate firm Anant Raj Industries Ltd said on Friday it has priced its global depositary receipts (GDRs) at $7.494 each. Each GDR represents one equity share of the company. It said the company has received commitments for $151 million. The GDRs will be listed on Luxembourg Stock Exchange.

Source: 18 Feb 2008 The Financial Express ‘Budget Homes’ are gaining popularity among builders and middle class has finally begun to dream. India’s urban population is growing at the rate of 2.5% annually. By 2011, close to 41% of India’s total population will be living in the urban areas. This has lead to increasing demand for budget homes. The country is witnessing an average addition of 2.3 billion sq ft of residential area each year, which means that 2 million houses of 1,175 sq ft each will be built every year. Industry experts believe that builders should plan keeping a certain clientele in mind. For such houses, they need to concentrate on volumes rather than ‘limited editions’ and price homes in a manner so that the lower or middle income segments can afford them, depending on target clientele. According to Mr. Anuj Puri, Chairman and Country Head of Hoems LaSalle Meghraj, ‘All major cities have a ‘budget home’ segment. Most of the activity would be in the sub...

Source: DNA Analysts say the move makes sense as it is already fairly diversified Mithun Roy. Mumbai Textile major KSL and Industries Ltd (KSL), promoted by Saurabh Kumar Tay-al, is betting big on its realty business. A banker close to the development said the Rs 800 crore company plans to demerge its realty business into a separate company and list it on the bourses. The rising rupee, which has hit exporters hard, seems to have taken a toll on its core business - textiles. Hence the focus on realty play in the next few years, said the banker. Analysts say the demerger makes sense considering the company has diversified into the realty business in a big way Tayal told DNA Money, "We are analysing all possible growth areas including hiving off and thereafter listing on bourses, but not immediately A separate team is looking into it and once the internal report comes, we will take the final call and subsequently inform the exchanges." Going by industry sources, KSL has started ...

Source: Business Standard RAGHAVENDRA KAMATH Mumbai, 26 February A fter Biyani's Future Group. BSE-listed stationery maker Today's Writing Products is entering into the retail of office supplies and stationery products. Today's is planning to open 500 stores under the brand name OFFIX in the next three years. The company has earmarked nearly Rs 160 crore for the venture and plans a mix of company-owned and franchises for the same. The company has floated a subsidiary Today's Stationery Mart for the venture. Today's is also setting up six warehouses, in the range of 70,000 to 80,000 sq feet, to cater to the operations of the company across the country. Last year, Future Office, the office products venture of Future group, entered into a joint venture with $16 billion US company Staples to form Staples Future Office Products in the country's $ 10 billion office products' market, which is dominated by city-specific unorganised players. According to estimates, t...

Source: The Asian Age By MAYUR SHEKHAR JHA New Delhi, Feb. 26: Indian Railways is getting real about estate. Lalu Yadav wants to put up for commercial use his department's surplus land assets. In 2008-09, the department plans to invest about Rs 4,000 crore in public private partnerships (PPP) for commercial development. A staggering 43,000 hectares of land, no less, across the country has already been identified for the purpose. "It makes good business sense for both the Railways, as well as the private developer. Often, this surplus land is around the main stations, bang in the heart of a city, and thus, commands huge value," says DLF group executive director Rajeev Talwar. India's largest real estate developer plans to bid for PPP projects mainly on the Delhi-Mumbai freight corridor. "At present, we are bidding for the land around New Delhi railway station. We would make use of opportunities as and when they arise," Mr Talwar said. The other real estate gi...

Source: The Economic Times Our Bureau MUmbaI BOOMING Islamic finance is likely to acquire assets in India through Islamic Real Estate Investment Trusts. According to a report by Moody's although IREITs are not in existence in India, the draft IREIT guidelines issued by Sebi may pave the way for these funds into the Indian property market. With high oil prices funnelling billions of dollars to the Middle East, there is an increased demands for Sharia-compliant finance products. According to Moody's, Islamic finance is now estimated to be worth around $700 billion globally while Sukuk, or Islamic bonds, are the fastest-growing segment, with volumes worldwide reaching $97.3 billion till 2007. Moody's pointed out that the property boom in the Middle East makes IREITs a much-needed product and a useful investment tool, given the existing favourable investment and regulation environment. Moreover, there has been a growing appetite for the real estate asset class among regional in...

Souce: Economic Times MUMBAI: Real estate firm Housing Development & Infrastructure (HDIL) on Wednesday said the private equity firm DE Shaw is investing $250 million in Mack Star Marketing, an HDIL group company. Mack Star Marketing holds development rights for a 54,000-metre commercial complex being constructed in Andheri. Last week, HDIL had transferred its development rights to this complex to Mack Star for Rs 900 crore. DE Shaw’s investment is in the form of equity and debt. HDIL managing director Sarang Wadhawan said DE Shaw will hold a minority stake, but declined to give details. The investment comes at a turbulent time for India’s capital and real estate markets. The steep meltdown in January and the withdrawal of Emaar MGF’s IPO in February rattled real estate firms who rely on equity to fund their expansion projects. PE money, which was always sought after, has become attractive now, but funds are being very selective and managements are also being forced to offer realis...

Source: Economic Times MUMBAI: Realty sector hopes that Finance Minister P Chidambaram will provide tax breaks on REITs in line with the Mutual Funds while he unveils the Union Budget on February 29. Market regulator SEBI has already come out with a draft guideline to allow Real Estate Investment Trusts (REITs), but there was no mention on the tax breaks that is imperative to popularise the REIT market to start with like any other global market. "I believe that income of the investors under REIT should not be taxed, like in the US. This will attract investors to further invest in REITs," Ansal API Chairman Sushil Ansal told PTI. The country needs to introduce REITs as soon as possible, he said adding that this would help to bring in funds to the sector. "All the benefits that the Mutual Fund industry enjoys should be made available to REITs as well. Long-term capital gains on sale of REIT units could be made tax exempt and short-term capital gains could be taxed at 10 pe...

Source: The Economic Times MUMBAI: The booming realty sector wants a status equal to telecom and aviation with amendments in the foreign direct investment guidelines to boost construction and infrastructure development in the country. "The realty sector is growing at a dizzying pace of almost 30 per cent each year. The bulk of construction activity - 80 per cent - is dedicated to housing, while the rest is commercial, including offices, malls, hotels and hospitals," said Akruti City Ltd Managing Director Vimal Shah. The double-digit growth in this sector is mainly on account of offshoring of business including high-end technology consulting, and improved techniques employed here. "In order to give a further boost to this sunrise sector and make mass urban housing affordable, tax exemptions are necessary in the next union budget. Then, property prices can come down by up to 20 per cent, bringing more people into the self-owned housing net, and enable the industry grow in ...

Source: The New Indian Express New Delhi, Feb 25: The government today approved 10 more proposals for Special Economic Zones, including those by Videocon Realty and Mahindra Worldcity. The Board of . Approval, chaired by Commerce Secretary Gopal Pillai, met here and took up 14 SEZ proposals, including three in-principle conversions to formal approval. Formal approval was granted to 103-hectare transport engineering goods zone by State Industries Promotion Corporation of Tamil Nadu Ltd (SIP; COT) in Tamil Nadu as well as to a mineral-based products SEZ in Madhya Pradesh by Madhya Pradesh Audyogik Kendra Vikas Ltd. Wardha Power Company's 102-hectare SEZ in Maharashtra and Anant Raj Industries IT/ITES zone in Haryana was also given formal approval. Mahindra Worldcity' s (Jaipur) 103-hectare handicraft and 104-hectare light engineering zones in Rajasthan were also approved. The in-principle nod to SIP-COT's 103-hectare automobile/automobile parts zone in Tamil Nadu and Videocon...

Souce: Economic Times of India. NEW DELHI: Real estate firm Alchemist Realty Ltd will invest over Rs 5,000 crore in the next 7-10 years for developing a land bank of 10,600 acres. "Currently, we have a land bank of 10,600 acres across the country, mainly in the northern states. We plan to invest about Rs 5,000 crore in the next 7-10 years to develop different projects," Alchemist Realty Ltd CEO Pran Khanna told PTI on the sidelines of Technopak Retail Summit here. The company plans to develop integrated townships, resorts, hotels and restaurants on its land bank, he said. Alchemist Realty proposes to open a chain of speciality restaurants in northern India under 'Red Cap'" brand. "At first, we will open 20 restaurants in two years in northern states. Excluding land and lease amount, we have earmarked an investment of about Rs 15 crore for setting up the outlets," he said, adding the eating joints would operate under franchisees as well as stand-alone ba...

Source: Economic Times of India. BANGALORE: Reliance Industries is in advanced talks with the New York-based Vornado Realty Trust, one of the world’s top five real estate asset managers, to float a $1-billion plus fund. The proposed fund will acquire and manage properties, mainly in the retail space, across India. People familiar with the development said RIL and the New York Stock Exchange-listed real estate investment trust (REIT) were discussing the possibility of an equal joint venture. Vornado, which has a market capitalisation of nearly $14 billion, owns and manages over 116 million sq ft of realty assets in the US with significant concentration in New York and Washington districts. The sources said while no definitive agreement is in place yet, both parties have made substantial progress in negotiations. RIL spokesperson declined to comment on the development. It is believed that the joint venture is likely to manage real estate for RIL’s rapidly-expanding retail arm Reliance Re...

Source: The Financial Express Damac Properties, the largest private sector developer in the Middle East, has firmed up plans to invest over $5 billion (Rs 19,700 crore) over the next three to five years in In-dia's burgeoning real estate market. The company has already initiated talks with Indian companies for a joint venture to pursue its investment plan. In order to drum up interest in the group and its iconic projects, Damac will hold roadshows across India. Mumbai hosts the roadshow between February 14 and 20. Damac, which plans to build residences, offices and shops in Mumbai, New Delhi, Hyderabad and Bangalore, will fund its proposed investments in India through internal resources. The company also hopes to attract Indian investors to its projects in the Middle East. Hussain Sajwani, founder & chairman, Damac Holding, said: "Through these roadshows, we also aim to educate our audience in India about our brand personality and the quality of our projects. The Indian re...