 | ||||||||||
| +Guidelines
on Prime Minister's Employment Generation Programme
|
Thesynergyonline Realty Bureau NEW
DELHI, MARCH 03 : IN Despite the positive news on the employment front, the recovery of demand in the office sector remained lukewarm as many companies continued to adopt consolidation and decentralization strategies to reduce real estate related costs. The fourth quarter saw overall vacancy for Asian cities edge up 30bps q-o-q to 12.8%, although Beijing, Hong Kong, Taipei, Bangalore and several Southeast Asian cities all recorded a minor decline in the amount of vacant space. Leasing
activity in the major Indian office markets was fairly buoyant in the final months
of 2009. In New Delhi, rental values in the CBD remained largely unchanged, with
major companies increasingly drawn to the area following the correction in rental
values witnessed over the past few quarters. Mumbai saw a number of fresh inquiries
for medium and large sized units, while the Bangalore office market remained quiet
with a few isolated mid and small size leasing transactions reported across the
major business districts. As the market outlook began to look more positive, landlords of prime buildings in leading Asian cities started to take a firmer stance towards maintaining present rental levels. Notwithstanding this fact, oversupply challenges continued to exert significant downward pressure on rentals in a number of emerging markets. Overall office rents in Asia fell 1.8% in the fourth quarter, the decline decelerating from the 3.1% recorded in the previous quarter. The current downward cycle has now lasted for about 18 months and certain markets with stronger economic fundamentals have already seen the slide in rentals come to an end. The fourth quarter saw an increasing number of firms in Tokyo opt to relocate to cheaper space or areas outside the city core, a trend which resulted in a negative net absorption level for the review period. The slowdown in rental decline expected in the third quarter failed to materialise and little improvement was seen, although the reduction in rents began to stimulate tenant interest in certain selected buildings. The recovery of office demand has been slower than expected and concerns remain over a possible double dip recession in the Japanese economy. The Seoul office market remained relatively quiet within the review period, with only minimal Grade A leasing activity being seen in the fourth quarter of 2009. There had been a rise in optimism in the third quarter after several conglomerates and companies in the financial sector announced plans to increase their headcount, but the review period did not witness any major new or expansionary demand. Most leasing activity during the fourth quarter involved conglomerates consolidating their core operations as well as those of their subsidiaries into self-owned properties to enhance business efficiency and save operating costs. In China, foreign companies became more active in terms of expansion, notwithstanding the fact that domestic enterprises remained the major demand driver, and a number of major transactions were executed in both Beijing and Shanghai during the review period. Beijing saw increased take-up with total net absorption reaching a level similar to that recorded prior to the global economic downturn. The overhang of projects postponed during 2009 means that the Beijing prime office market is expected to see the completion of nine new projects in 2010 providing a total area of 7 million sf. The Shanghai office market continued to witness signs of stabilisation with average rents recording their mildest dip yet since the onset of the financial crisis. Similarly, the decline in rents for prime office space in Guangzhou eased to 0.6% q-o-q. The signing of the much anticipated financial MOUs allowing Taiwanese and Chinese financial institutions to apply to establish branches on either side of the Taiwan Straits did not immediately translate into significant demand from mainland Chinese companies for office space in Taipei during the review period. As a consequence, the market remained generally stable although companies in the financial sector and healthcare industry were observed to continue to be actively planning for expansion. Grade A rentals are anticipated to bottom out in forthcoming quarters on the back of gradually improved take-up levels. The Hong Kong Grade A office market was largely stable during the fourth quarter thanks to improved market sentiment and a more optimistic economic outlook. The review period witnessed some landlords of prime new buildings in Central increase their asking rents and adopt a stronger stance towards rental negotiations due to the more robust demand for space. In Singapore, tenants that had delayed decision-making relating to renewal or relocation options earlier in 2009 became increasingly active during the review period. The number of relocations increased although the focus of this activity still centred on finding cheaper alternatives or moving because of the redevelopment of existing premises. Selected tenants were looking for space to expand, with a number of large financial institutions ready to move forward with such plans. However, prime office rents fell for the fifth consecutive quarter in spite of the more positive outlook.
'AFFORDABLE
HOUSING - HOW LAW AND POLICY CAN MAKE IT POSSIBLE' By
Dr Arun Mohan
NEW
DELHI, FEB 20 : Mr Justice R. V Raveendran, Judge, Supreme Court of India presided over the function. Many judges of the Supreme Court and the High Court were present at the function along with Town Planners, Architects, Builders, Developers, Consultants, Experts, Bankers, and other eminent personalities. The research work ‘Affordable Housing’ examines the problems faced by housing sector across all its stratas – upper middle, middle, and lower middle in particular and comes up with practical solutions on how cost can be reduced and actual development carried out. The work points out how 44 percent of our population which can afford to repay a home loan is ignored by the finance sector. The cost of ownership can be reduced by over 30 percent, the interest rates (or home loans) can be reduced and those who are treated as unqualified for finance can also be given the finance. It also informs how a person who is earning a little more than the minimum wage can look forward to purchase his own flat one day. Wizardly, at law, policy and finances, keeping in view the economic fundamentals and human behavioural patterns, this work covers the problem of housing in its true spirit and is targeted at the policy maker, those concerned with implementing the policy and written in a pattern that even a layman will find it worth it. The book also highlights information and facts a prospective flat buyer, or one taking a home loan, must know. The ‘crisis of confidence’ between the builder, the flat buyer and the bank financier is sought to be overcome by the concept of a Certifying-cum-Performance Guaranteeing Company (CPG Co.). The author took time off from his busy practice and conducted this research and creative writing for public service, as housing is a subject where subsequent light should be thrown. Written from a multitude of perspectives, ‘Affordable Housing’ is a stimulating work written by the renowned Senior Advocate in his inimitable style and clearly demonstrates his ability to fuse the insight on housing from all its perspectives. Moreover
Dr. Mohan plans to bring out the Executive summary in Hindi and other regional
languages so that it can be used by the widest section of the society. The
price too is modest for a comprehensive research work, which showcases how the
public service element is involved and would be useful for all, including those
who one day hope to own a home. It is indeed a masterful and an admirable
work in service of society by Dr. Mohan. (editor@thesynergyonline.com)
LOGIX GROUP LAUNCHES RS 1200-CRORE RESIDENTIAL PROJECT 'BLOSSOM COUNTY'; Thesynergyonline Real Estate Bureau
NEW
DELHI, FEB 17 : Meticulously designed, Rs 1200 crore project will comprise over 2500 apartments in the configuration of 2, 3 and 4 BHK apartments and penthouses with ground floor units having private lawns, starting with the affordable price of Rs 24 lakh with extensive landscaped greens, walkways, fountains and water-bodies.
Blossom County is spread over 25 acres and will provide all modern facilities
and amenities that assures enormous comfort to life. The
project would include features like earthquake resistant structure, energy efficient
Green Homes with solar lighting at landscaped areas, rain water harvesting etc,
super specialty Medical Center with state-of-the-art equipment & facilities,
Power and water supply back up and Multi-level security systems with fool proof
access control to name a few thus proving to be an epitome of extraordinary living. On the launch of Blossom County, Mr. Shakti Nath ,CMD, Logix Group said, "Blossom County has been created for people who aspire to live in a home which is a part of a planned and efficiently designed gated community that offers all modern facilities". He
also added "It has always been our constant endeavor to bring quality construction
with the best of amenities to our customers." Spread over 25 acres, the Phase 1 (800 Flats) of the project has already been sold out. It has been designed as a new and exciting place to live, work and play. Blossom County goes much beyond quality construction, making a definitive statement in opulence and luxury - from cutting-edge home automation technology with video door phone to a private lap pools and Jacuzzi in the penthouses. Complementing the fabulous residences, are high-end external lifestyle amenities like Dezire-the club Fantasia, exclusively for the residents of Blossom County, where the sports enthusiast and the leisure seeker can pursue their interests with equal passion. Spread over 1 lakh sq.ft area, the club incorporates state of the art facilities like a tropical beach pool which shall be the first of its kind in a residential project, an all weather pool with separate pool for ladies and children, meditation centers, amphitheatre etc. The complex shall also have play school run by "The Banyan" in JV with Magellan academy USA, Food Courts by Sagar Ratna, Swagath, Café by Barista, Café Coffe day, Top Breads, Service apartment by Bella Vista etc. From the amenities planned to the breathtaking landscaping, every detail collaborates to provide a living experience that truly harmonizes with international standards. Blossom County thus creates in Noida a luxury housing project to build better lives through innovative solutions and the best value for money. (editor@thesynergyonline.com) THE 3C COMPANY UNVEILS RS 2,400 -CRORE NEW GREEN ZIP CODE -'LOTUS PANACHE' Thesynergyonline Real Estate Bureau
Lotus Panache is strategically located in Sector 110 of Noida, amidst the well- inhabited Sector- 82 right off the Noida - Greater Noida expressway. This green residential project enjoys excellent connectivity with key locations in Noida, including the DND Flyway, Sector 18 Market, upcoming metro station, schools, hospitals and other world class amenities. Mr. Vidur Bharadwaj, Director, The 3C Company said, “The aspiration to own a green residential address that provides healthy living and cost savings has grown tremendously. Our recently launched green residential Project – Lotus Boulevard , is a huge success, were we sold over 2200 units in less than six months." "Our latest offering, Lotus Panache, provides a new opportunity to meet this burgeoning market demand. Customers want to live in an eco-friendly green environment, experience world-class construction and amenities, have access to infrastructure, reduce soaring energy costs, combat global warming and reduce their carbon footprints, all of which we are providing in Lotus Panache at highly affordable prices, " he said. Red Fort Capital, a private equity real estate firm focused on India , has invested in both Lotus Panache and Lotus Boulevard . Subhash Bedi, Managing Director of Red Fort, states that “We are delighted to back the 3C Company’s new Lotus Panache project in Noida. The market and end-users alike recognize that Red Fort’s backing ensures expedited delivery timelines, superior construction technology and enhanced product quality. 3C is a proven developer of high-technology green projects, and Lotus Panache’s location is second to none, given its proximity to an established neighborhood and strong in-place infrastructure.” “Red Fort Capital and the 3C Company have further strengthened their relationship with this new project” added Mr. Bharadwaj. Mr. Bedi confirms that “The success of Lotus Boulevard has enabled Red Fort to both return capital and harvest proceeds, some of which we are re-investing into the new Lotus Panache project.” . (editor@thesynergyonline.com)
Thesynergyonline Real Estate Bureau NEW
DELHI, JAN 29 : National Highways Authority of India (NHAI) had earlier awarded the project on a Build, Operate and Transfer (Toll) basis to GMR Hyderabad Vijayawada Expressways Private Limited. Punj Lloyd will be widening the highway from two to 4/6 lanes along with 38 km of service roads. The scope of work will also include construction of 2 major bridges, 32 minor bridges, 174 culverts, and 31 vehicular, pedestrian & cattle underpasses, apart from 66,000 Sq M of reinforced earth retaining wall. Hyderabad and Vijayawada are important commercial hubs of Andhra Pradesh and this project will help boost trade and commerce in the region. In addition to increasing the direct connectivity between these two major cities of the State, Kolkata and Bangalore will also have improved connectivity consequent to the implementation of this highway. Commenting on the new project, Mr. B S Kapur, President & CEO - Infrastructure, Punj Lloyd, said, “We are committed to the Government's vision of developing world-class highways in India. We will deliver to the country and the State of Andhra Pradesh, a reliable, high quality infrastructural solution that will be a model showcase for future projects. ” Punj Lloyd, a diversified global conglomerate providing engineering and construction services in oil and gas, Infrastructure and petrochemicals, with interests in defence, aviation, marine and upstream sectors, has a presence in highway construction. The company embarked on its first road project in March 1999 and has come a long way in these years by completing many highway projects falling under the Golden Quadrilateral and East West Corridors for NHAI. Its completed projects include coastal roads in Andhra Pradesh, Jaipur Bypass and a major section of Kota-Udaipur in Rajasthan, Sasaram-Mohania road in Bihar, Belgaum-Maharashtra road in Karnataka and five highway projects in Rajasthan. Six road projects in Assam awarded by NHAI are in progress. With
this contract, the order backlog for the Punj Lloyd Group on consolidated basis
has gone up to Rs 24,536 crore. This is the total value of unexecuted orders as
on December 31, 2009 and new orders received after that day.
(editor@thesynergyonline.com)
'RESERVE
35% OF LAND AREA IN NEW HOUSING PROEJCTS OR AFFORDABLE HOUSING' Thesynergyonline Real Estate Bureau NEW DELHI , JAN 29
: The present National Housing Policy recommends reservation of 15 percent of the land area in all new housing projects, which is hardly executed and thus the housing remains a dream for middle and lower middle class, adds the ASSOCHAM findings. The
Chamber is of the view that affordable housing for lower middle class should be
within the range, not exceeding Rs.6-7 lakh and that of middle class, the affordable
housing be within the cost of Rs.15 lakh. The
Centre, therefore, should issue a directive to all states and UTs to allocate
lands to all new housing project developers in state owned and private sector
to exclusively construct housing for them for which the land costs should be one
fourth of the market price. This way the affordable housing could be possible
as the subsidized land costs can offset the higher input costs for construction
material. The
Chamber also believes that non-resident Indians should be allowed to save dollars
in India at higher savings rates so that banks and financial institutions no longer
complain of liquidity crunch for extension of loan facilities to projects developers.
The
housing sector which contributes 40% to national GDP can accelerate its contribution
provided industry status is conferred on this as it would enthuse investments
and attract large companies to make their investments in the real estate with
reduced prices. The
Chamber has pointed out that one of the reasons of high cost of real estate and
housing in India is the cost of finance. A major part of housing loans constitute
loans to individuals in the higher income group. Only 5-7 percent of the loans
disbursed by the housing finance companies reach builders and developers. The
industry status will help the sector to access bank lending at average interest
rates at low collateral as against high risk rates prevailing at present. Further,
it would also help sector access central and state subsidies in case developers
are building in backward regions as well as north-eastern regions and raise external
commercial borrowings. The
Chamber has also sought that the terms of loans extension for real estate should
be made easier. It holds that higher debt equity ratio should be available for
real estate sector as under current scenario, restructuring of advances should
also be made available as most of the developers have not been able to adhere
to their respective promise schedule for repayment of their loans. The
Chamber has also mooted a proposal for providing infrastructure status on housing
so that mass housing activities are effected in an integrated manner. Real estate
developers need to be given incentives for creating such an infrastructure in
the country. The
Chamber, therefore, suggests that in the definition of infrastructure facility
under Section 801A, the following clause should be added. "An integrated
township and group housing development on area more than 10 acres involving provisions
of residential, educational, medical, community, commercial or institutional building
and creation of required facilities including roads, water supply, water treatment,
sanitation and sewage system". Further,
the Chamber is of the view that in projects where there is public and private
partnership, these should be classified as infrastructure projects in which government
contributes the land and charges part of the land costs from the developer in
advance from part recovery is made from the sale price of the project.
(editor@thesynergyonline.com)
ERA INFRA NET PROFIT UP 85.39% AT RS 57.24 CRORE Thesynergyonline Real Estate Bureau NEW
DELHI, JAN 26 : For the quarter ended Dec 31, 2009, the company recorded revenues of Rs 896.18 crore, an increase of 51.33 per cent from Rs 592.18 crore in the corresponding quarter last fiscal. EBIDTA stood at Rs 161.75 crore, an increase of 75 percent as compared to Rs 92.34 crore in Q3FY09. For the nine months ended December 31, 2009, the company's revenue was at Rs. 2434.55 crore, up 70.97 percent from Rs. 1423.93 crore during the corresponding period last year. The EBIDTA for the period stood at Rs 475.94 crore, registering an increase of 70.92 percent from Rs 278.44 crore. The company reported a net profit of Rs. 217.21 crore, up 128.78 percent as against Rs. 94.94 crore in the same period of last year. During the quarter the construction and contracts division of the company received the following contracts:
* Rs. 97.92 cr from Steel Authority of India for setting up Basic Oxygen Furnace
(BOF) & continuous casting shop (CCS) at Bhilai Steel Plant, Bhilai, Chhattisgarh. LIC
HOUSING FINANCE NET UP 14% AT RS 153.58 CRORE Thesynergyonline
Real Estate Bureau NEW
DELHI, JAN 25 : The
total income of the company excluding other income for the third quarter was Rs.
878 crore as against Rs. 765 crore during the same period last year, a growth
of 15 percent. The
company has recorded a strong growth in its business during the third quarter
ended December 2009. The company sanctioned Rs.4516 crore and disbursed Rs. 3604
crore of loans, registering a growth of 72 percent and 86 percent respectively.
In the individual loan segment the Company sanctioned Rs. 2796 crore and disbursed
Rs. 2995 crore , registering a growth of 82 percent and 90 percent respectively. The
net profit for the third quarter was Rs. 153.58 crore as compared to Rs. 134.33
crore in the corresponding period last year, showing a growth of 14 percent. The
total income of the company excluding other income for the third quarter was Rs.
878 crore as against Rs. 765 crore during the same period last year, a growth
of 15 percent. For
the nine months ended December 2009, the company sanctioned Rs. 13414 crore and
disbursed Rs. 9791 crore, an increase of 83 percent and 75 percent respectively.
In the individual loan segment the company sanctioned Rs. 10077 crore and disbursed
Rs. 8662 crore , registering a growth of 95 percent and 78 percent respectively. For
the nine months ended December 2009, the company's total income excluding other
income was Rs. 2493 crore as against Rs.2090 crore during the same period last
year, a growth of 19 percent. Net profit during this period was Rs. 448.66 crore
as compared to Rs. 374.06 crore in the corresponding period last year, a growth
of 20 percent. The
company recorded a net interest margin of 2.76 percent for the third quarter of
FY - 2009-10 as against 2.44 percent in the second quarter of FY 2009-10. Mr. R. R. Nair, Director and Chief Executive, LIC Housing Finance , "The company continued on the strong business growth of the earlier quarters, with an equally robust portfolio growth, well above the industry averages. During the quarter, the company was also able to improve on the spreads and Net Interest Margins." (editor@thesynergyonline.com) Thesynergyonline
Real Estate Bureau NEW
DELHI, JAN 25 : He
brings with him 35 years of experience in the execution of various prestigious
construction projects including 8 years in gulf countries In India, he has previously held assignments with Hindustan Construction Company, J.K. Industries , Cimmco Birla, Flex Group, Gannon Dunkerly & Co, JMC Projects . He has worked for around 4 years with DLF Universal Limited as Vice President (Projects). His last assignment was with Uppal Group as a Project Director where he was overall incharge of project division. (editor@thesynergyonline.com) RAHEJA WINS 'BEST DEVELOPER REATAIL' AWARD Thesynergyonlione Real Estate Bureau NEW
DELHI, DEC 13 : The
coveted award was received by Mr.Nayan Raheja, Director, Raheja Developers by
the hands of Mr. Ghassan Youssef, Managing Director, RAKINDO after carefully taking
into consideration numerous other properties from some of India's top builders
by an eminent panel of judges. Over the last few years the Cityscape Awards have
now developed into the world's premier Architectural Awards for the emerging markets.
The
Awards reward excellence in architecture and design from the emerging regions
of the Gulf States, the Middle East, Asia, Africa, South America and South and
East Asia and Latin America and seek to recognize and reward Architects and their
entries that have shown outstanding designs, performance, vision and achievement
in key emerging market and project areas. To
decide which projects were worthy of winning the Awards and seals of distinction
of the Cityscape Architectural Awards, a judging panel consisting of high profile
international judges spent a whole-day viewing, deliberating and discussing each
and every entry. Getting this recognition is an endorsement of the use of high quality construction materials, timely completion of projects, transparency and delivery making Raheja Developers one of the best developers in the country. Last year they were declared Best Developer Residential for "Raheja Atlantis" by CNBC AWAAZ CRISIL real estate awards, say company sources. (editor@thesynergyonline.com) SUN - APOLLO INVESTS IN PARSVNATH PART II -GURGAON Thesynergyonline Real Estate Bureau NEW
DELHI, DEC 12 : On the investment by SUN-Apollo, Mr. Pradeep Jain, Chairman, PDL, said, "We are starting to see recovery in the real estate markets following improvement in liquidity and rationalization of property rates, especially in the residential segment which has struck a definite high note over the last one and a half quarters with pent-up demand materializing into sales." "I reiterate that with strengthening of the Indian economy the investors' faith has also strengthened in the Indian real estate sector. Our association with SUN-Apollo is a significant achievement as it highlights investors' faith in our commitment and execution capabilities", he added. "We have earlier joined hands with Red Fort Funds for another premium project Parsvnath La Tropicana in Delhi. This further shows investors' confidence in Parsvnath Developers," Mr. Jain added. (editor@thesynergyonline.com) KEKI MISTRY TO TAKE OVER HDFC AS VICE CHAIRMAN & CEO Thesynergyonline Real Esatate Bureau MUMBAI,
DEC 06 : Mr. Parekh has been appointed as an Additional Director of the Corporation from January 1, 2010 and shall hold office as such up to the date of the next Annual General Meeting of the Corporation (AGM) pursuant to the provisions of Section 260 of the Companies Act, 1956. However, he will continue to be the Chairman of the Corporation. Mr. Keki M Mistry, currently the Vice Chairman & Managing Director will be re-designated as the Vice Chairman and Chief Executive Officer of the Corporation w.e.f. January 1, 2010. Mr. Keki M Mistry joined the Corporation in 1981, has served on the Board of the Corporation for 16 years. He has worked in various positions and now would be responsible for the overall functioning of the Corporation. Mrs. Renu Sud Karnad, currently the Joint Managing Director has been appointed as the Managing Director of the Corporation for a period of 5 years from January 1, 2010, subject to the approval of the shareholders at the ensuing AGM. Having joined the Corporation in 1978, Mrs. Renu Sud Karnad has been on the Board for the last 9 years. She will continue to be responsible for the Operations, Human Resources and Communications functions of the Corporation. Mr. V. Srinivasa Rangan, Sr. General Manager & Chief Treasurer has been appointed as the Executive Director of the Corporation for a period of 5 years, w.e.f. January 1, 2010, subject to the approval of the Shareholders at the ensuing AGM. Mr. Rangan joined the Corporation in 1983 and has served in Delhi and Mumbai. He will also oversee the Resources and Accounts functions of the Corporation. (editor@thesynergyonline.com) LONDON
(WEST END) AGAIN WORLD'S MOST EXPENSIVE OFFICE MARKET Thesynergyonline Real Estate Bureau NEW
DELHI, DEC 01 : Tokyo's Inner Central, which was at number 1 in May this year has slipped to second place, followed by that city's Outer Central market. Hong Kong's Central Business District (CBD) and Moscow are fourth and fifth respectively in the CBRE report, which tracks office occupancy costs in nearly 180 cities around the globe. Anshuman Magazine, Chairman & Managing Director, CB Richard Ellis South Asia says, While Mumbai continues to remain in the top ten (having dropped from 6th to 7th position) Delhi has re-joined the top 10 ranking (moving up from 12th to 10th position) of most expensive office markets, after two years. Although the rentals in the Delhi CBD have remained stable for the past 6 months, it has moved up to the 10th position primarily due to other global cities declining significantly in office rentals. " "From the third quarter of 2009 onwards we have seen corporates coming back into the market and office space take-up has improved. To reduce office occupancy costs further and facilitate more supply of office space we need to urgently improve our infrastructure and amenities. This would bring our world rankings down further and make India more competitive ," he says. Office markets worldwide are experiencing declines in prime office occupancy costs. The year-over-year change in prime office occupancy costs of the 179 markets monitored revealed an average drop of 7.7 per cent worldwide over the 12-month period ending September 30, 2009 (in local currency and on an un-weighted average basis). The majority of markets - 131 markets in total - experienced a year-over-year decline including nearly 50 which saw rents tumble by double-digit percentage-points. Many of the world's bellwether financial centers are at the top of the list of fastest changing markets, including Hong Kong Central CBD(-40.7%) and New York, Midtown(-29.7 percent) along with emerging markets such as Ho Chi Minh City(-45.4 percent) and Abu Dhabi(-38.6 percent). Kiev led the world with the largest year-over-year decrease in office occupancy costs, falling 64.6 percent from year-ago levels. "While there are signs that commercial real estate values are stabilizing in some markets in Asia and parts of London, underlying property fundamentals are still weak," said Dr. Raymond Torto, CBRE's Global Chief Economist. "However the office market may be on the cusp of moving from intensive care to the stabilization stage - the first step to getting back to good health." Forty-one markets experienced positive growth. Aberdeen, Scotland and Rio de Janeiro, Brazil both grew by more than 10% as not all markets have been as affected by the decline in global demand and demand for office space has proven resilient in some areas due to the local market dynamics. Office occupancy costs measured in U.S. dollars are affected by changes in the dollar's value versus the respective local currency. Hence, office occupancy costs when converted into U.S. dollars are driven by both the local market dynamics of supply and demand, as well as currency changes.(editor@thesynergyonline.com) PRANAV ANSAL HONOURED FOR OUTSTANDING CONTRIBUTION TO RETAIL REALTY Thesynergyonline Realty Bureau NEW
DELHI, NOV 29 : Mr Pranav Ansal was the driving force behind Ansal API's pioneering work in creating the Mall culture in the country by setting up the landmark "Ansal Plaza" in Delhi in 1999. Ansal Plaza is credited with kicking off the retail revolution in India. The was presented to Mr Ansal at the Franchise India 2009 in the Capital . Franchise India, is the Asia's major franchise and retail annual event. It aims to promote retail business in India and brings together entrepreneurs and professionals from the franchising, retail and real estate sectors. Speaking on being awarded, Mr. Pranav Ansal, VC & MD, ANSAL API said, "I am humbled and delighted to receive the award and attribute this achievement to the entire Ansal API team. We hope to continue contributing to the growth and innovation in the Indian retail industry". "This is a fortunate co-incidence that I am being honoured for introducing the mall culture in India and soon we will also be celebrating the 10th anniversary of India's first Mall establishment - Ansal Plaza," Mr Ansal said. Mr. Pranav Ansal was also the guest of honor and the key speaker at the two day conference. During his address, he shared his views on the dynamic shift in the Indian retail industry in the last one year and his outlook on the future of the industry. Mr. Pranav Ansal's success story in the retail segment strengthened with the establishment of Ansal Plaza in Delhi. Within a very short span of time Ansal API has built splendid malls in other parts of the country such as Amritsar , Bhilwara , Faridabad , Greater Noida , Jalandhar , Jodhpur , Lucknow , Ludhiana , Kurukshetra and many more. (editor@thesynergyonline.com) . MAJOR OFFICE MARKETS IN INDIA SEE RENEWED ACTIVITY Thesynergyonline Real Estate Bureau NEW
DELHI, NOV 09 : In New Delhi, rents for Grade A offices in the CBD strengthened, edging up 4.5 per cent q-o-q thanks to improved market sentiment and the lack of new supply. Nariman Point CBD in Mumbai witnessed few completed transactions, with many companies preferring to move to locations in the Extended and Alternate Business Districts in order to reduce their real estate costs. The Bangalore office market witnessed a rise in enquiries as a number of corporates considered relocating to the CBD, which boasts good civic infrastructure. However, this interest only translated into a limited number of medium and small sized transactions. Anshuman Magazine, Chairman and MD, CB Richard Ellis, India said, “The increase in demand is largely due to improving economic conditions, positive market sentiments and growing corporate confidence. However, it would take some time for the supply-demand gap to get bridged, thus both rental and capital values are expected to remain stagnant or under downward pressure in the medium term.” The Asian office market down cycle has stabilized in the third quarter of 2009 as the improvement in Asian employment markets generally provided a clear indication that the office market was close to the bottom. Corporations outside of the export trade sector commenced expanding headcount and financial institutions began hiring staff to pursue high-margin businesses as economic conditions improved. Amongst Asia’s developed economies, Japan, South Korea and Hong Kong all reported their first declines in unemployment rate since the Lehman Brothers bankruptcy in September 2008. Historically, office vacancy has trailed closely behind the unemployment rate. The third quarter saw overall vacancy for Asian cities remain at 12.5%, unchanged from the previous quarter, but with Tokyo, Hong Kong, Beijing, Seoul and several Southeast Asian cities all recording a minor decline in the quantum of space vacant. Office leasing activity gradually increased during the quarter after a quiet first half. Activity was characterised by companies seeking to reduce pressure on profit margins by relocating to more cost-effective premises. Other corporate occupiers made a flight to quality by moving to prime buildings, more affordable now following the sharp rental correction witnessed over the previous year.Overall net absorption around the region increased 14 per cent q-o-q with only three out of the 17 cities tracked still recording negative absorption, namely Singapore, Delhi and Manila. Despite the improvement in business sentiment, occupiers remained cautious about real estate related expenses. Landlords continued to display flexibility in negotiations, especially in cities with high vacancy rates and which remain under pressure from a pipeline of new supply. While office rents remained still technically static in the latter part of the down cycle, the CBRE Asia Office Rental Index showed that the pace of decline nevertheless slowed. Overall, office rents in Asia fell 3.1 per cent in the third quarter, decelerating from the 6.7 per cent decline witnessed in the previous quarter. Rents in Asian cities either underwent a milder rate of rental reduction or provided indications of slight improvement. It is expected that the rate of rental decline will ease further or bottom out in the coming months. Notwithstanding this fact, the threat of supply-side risk remained significant in Singapore as well as in the major office markets of China and India, all of which are presently expecting a large quantum of new office space to come on stream over the next few quarters. Looking at the performance of individual markets during the third quarter, the Tokyo Grade A office market started to stabilise on the back of improved business confidence and flight-to-quality activity taking advantage of current low rental levels. After adjusting downwards for seven consecutive quarters, rental levels were close to bottoming out. Perception of this fact spurred companies to relocate to higher quality properties with rental levels similar to those being paid for their current premises, while other occupiers used the opportunity to consolidate their offices. The performance of the Seoul office market was distinctly mixed, despite the country’s gradual recovery from the economic downturn. Capital values of prime office properties in Seoul rebounded strongly but the recovery in the leasing market stuttered due to weak demand for quality office space. Rents for Grade A office properties continued to be largely resilient, as they have been since the onset of the global financial downturn, although selected landlords softened their stance slightly by lowering asking rents or offering incentives such as longer rent-free periods. Demand for prime office space in China was driven by domestic large-cap corporations while multinational companies were comparatively quiet. Beijing saw the completion of a number of major leasing transactions in the Finance Street area by state-owned financial institutions. However, mounting new supply ensured vacancy remained above 20% level for the fifth consecutive quarter. Shanghai witnessed a rise in leasing activity among foreign companies from industries less affected by the financial downturn, while leasing transactions in Guangzhou were dominated by domestic companies. The
Taipei office market witnessed a revival in leasing activity, spurred by a number
of companies resuming relocation plans which they had earlier deferred in late
2008. The third quarter also saw several office occupiers upgrade their premises
by relocating to better quality Grade A buildings. In Hong Kong the office market benefitted from firmer leasing market conditions and the improved economic environment, with Grade A office rents ending their year-long slide to hover at an average of HK$39.7 (US$5.12) psf per month. However, despite this improvement in market sentiment, the quarter still saw a continuation of the trend of companies cutting costs by relocating to cheaper premises, a trend which first emerged in the second half of 2008 following the onset of the economic downturn. In Singapore, activity surrounding the planning of new premises increased as did occupiers’ requests for proposals for relocation alternatives, with many inquiries likely to be converted into transactions in the near future. The review period saw occupiers generally continue to seek out lower costs and better value options, but a few selected companies were also actively seeking to expand within the quarter. While office rents fell for the fourth consecutive quarter, clear evidence emerged that the pace of rental decline had eased following the improvement in business confidence. Rentals in Jakarta, Kuala Lumpur and Ho Chi Minh City all held firm while the Manila office market witnessed rents across various districts decreasing and vacancy rising as increase in supply continued to outpace demand. Demand for space in the latter’s Makati CBD continued to decline as alternatives became available in other districts at lower costs. Overall, the third quarter provided evidence of recovery in the Asian office market with a rise in leasing enquiries for Grade A office space and a halt in the previously rising trend in unemployment. While it is highly likely that the Asian office market will exit the down cycle within 2010, past experience suggests companies will persist in implementing low-cost real estate solutions in the early phase of economic recovery. Rental levels are therefore likely to remain low for some time before finally returning to an upward track. (editor@thesynergyonline.com) . TATA HOUSING STARTS 'VICTORIA' PHASE II OF RAISINA RESIDENCY Thesynergyonline Real Estate Bureau NEW
DELHI, NOV 02 : Raisina Residency offers amenities for an unmatched lifestyle. 3 BHK air-conditioned apartments, 100% power backup, beautifully designed entrance lobby with premium marble flooring, air-conditioned ground floor lobby, a well designed and furnished waiting lounge with reception area, two high speed passenger lifts in each tower, earthquake resistant structure as per relevant IS codes, split air-conditioner in all rooms, imported marble flooring in living/dining room and in family lounge, real wooden flooring in master bedroom, natural teak veneered flush door for main entrance, modular kitchen making the property a luxurious haven. Mr. Brotin Banerjee, CEO and MD, Tata Housing Development Company said, “With the overwhelming response received from our consumers for the phase I of Raisina Residency launched in August, 08, we are happy to announce the launch of “Victoria” phase II of Raisina Residency, which again is designed by one of the best international architects. With improved market conditions, we are confident of “Victoria” generating a favourable response from the consumers. TATA Housing’s philosophy of maintaining transparency coupled with credibility and reliability of delivering projects on / before schedule has resulted in complete support from both public and private financial institutions.” TATA
Housing’s award winning property - Raisina Residency has also been awarded
the 5-star and 4-star awards in the Best Development Marketing (Residential category)
and Best Architectural Design (Residential category) at the CNBC Asia Pacific
Property Awards, 2009. (editor@thesynergyonline.com)
ANSAL PROPERTIES Q2 PAT UP 38.66% AT RS 33.74 CRORE Thesynergyonline Corporate Bureau NEW
DELHI, NOV 02 : Revenues increased by 29.55 per cent to Rs.185.73 crore as compared to Rs. 143.36 crore in Q2 FY2009 . EBIDTA went up by 27.32 per cent to Rs.59.19 crore as compared to Rs.46.49 crore in Q2 FY2009 . The company's earning per share( EPS) for Q2 FY2010 stands at Rs. 2.97 (non-annualised) . The
company's first- half revenues on standalone basis increased by 1.60 per cent
to Rs.323.68 crore in FY'10 as compared to Rs. 318.58 crore in half year FY2009. Speaking on the quarter/half year results, Mr. Pranav Ansal, VC & MD, Ansal API, said, “There is no denying that the last fiscal year was a tough year for all sectors but mostly for the real estate sector. However,
we are pleased to announce that there has been improvement in our performance
given our focus on affordable housing and mid-market residential market. We, as
promoters, reaffirmed our belief in the company’s future by investing in
warrants of the company. We also attracted funds from IPRO Funds, an FII based
in Mauritius. ” (editor@thesynergyonline.com)
SAMIRA HABITATS NAMES KNIGHT FRANK AS EXCLUSIVE PROJECT MARKETERS FOR SAMIRA PAVILIONS Thesynergyonline Real Estate Bureau MUMBAI,
OCTOBER 27 : Samira Habitats, a leading Lifestyle and Infrastructure company has brought together the paramount in comfort, interior designs and premium layouts at a brilliantly celestial location at Alibag. Samira Pavilions is a luxury gated community with 200 exclusively designed duplex villa's of two and three bedrooms with private gardens and deck areas. The project has a speed boat service and also includes clubhouse, luxurious spa and various other amenities for its residents. Commenting on this development, Mr. Pranab Datta, Vice Chairman & Managing Director - Knight Frank India said, "Knight Frank is known to manage and market the best of exclusive property across the globe. Samira Pavilions is an addition to that list of distinguished projects. We are happy to be a part of this project and believe that the discerning home seeker with find their perfect abode here." Elaborating further, Mr. Datta said, "By introducing convenient speed boat services, we believe this project is the first of its kind to bridge distances by tapping the waterways and presenting a new dimension to lifestyle living. These scenic luxury homes will be closer from the heart of Mumbai than most suburbs and will offer buyers the right product at a right price." In a one of its kind move, Samira Habitats recently roped in noted fashion designer Sabyasachi Mukherjee to do up the interiors of limited edition stand alone villas that will be part of this project. Announcing this appointment, Mr. Mihir Nerurkar, Executive Director (Projects) - Samira Habitats said, "It takes a lot to develop a project that is out of this world. At Samira Habitats that's what we have been doing over the years. Our project partners play a vital role in this process and that is where Knight Frank comes in. We are confident that their global reach and expertise will add much value to our fine living project." Apart from elegant internal courtyards, water bodies and external open decks, Samira Pavilions will offer ample space to lounge in the project. The state of the art club house and lavish spa will only add to the luxury and opulence of this project, coupled by the allure of a very popular location like Alibag. (editor@thesynergyonline.com) NAREDCO PRESENTS MODELS FOR PPP IN HOUSING Thesynergyonline Real Estate Bureau NEW
DELHI, OCTOBER 10 : The Conference was inaugurated and addressed by Kumari Selja, the Minister for Housing & Urban Poverty Alleviation, Government of India. The objective of the National Conference was to evolve innovative, transparent and hassle free Public Private Partnership models which could bring synergy between public & private sector in tackling the housing requirement of urban India, especially the urban poor. The main highlight of the National Conference were the domestic experiences of PPP in housing and some of the relevant international best practices that NAREDCO presented as key highlights of a strategic report it has developed in association with its knowledge partner, Knight Frank, the international property consultants. According to Mr. Rohtas Goel, President, NAREDCO, “In developing India, we are faced with the problems of slums and squatters as our cities do not have the required infrastructure and shelter to accommodate growing migration of the people to urban areas. As per Govt. own estimates, there is a shortage of more than 25 million houses mostly in Low Income Group Category. The shortage is growing despite best efforts by the Government and the private sector. This huge shortage require more than Rs. 4,00,000 crore of investment. Problem of this magnitude can not be handled either by the Government or by Private Sector independently. Public-Private Partnership (PPP) is right approach to address this problem. This conference has made an earnest attempt to bring all stake holders on one platform and deliberate upon the issues, concerns and opportunities to reduce widening gap between housing demand and supply and to make housing affordable to all". “We firmly believe that right models of PPP in housing shall work as panacea for addressing the shortfall in urban India especially for the sections deprived. We have had very constructive discussions today and we shall incorporate the major observations, learning and ideas generated at the National Conference into the strategic report before presenting to the Government. This indeed was a truly interactive public private platform and we are buoyed the phenomenal response and acceptance it has received,” said Brig. (Retd.) R.R. Singh, Director General, NAREDCO. Case studies on and learning from Bengal Ambuja Housing Development; West Bengal Housing Infrastructure Development Corporation Ltd. (WB HIDCO) and Shapoorji Pallonji alliance for New Town, Rajarhat, Kolkata; Awas Bandhu, a committee formed by the Uttar Pradesh Housing & Urban Planning Department; Dharavi Slum Rehabilitation; Andhra Pradesh Bhawan; Emmar MGF Commonwealth Games Village; Yamuna Expressway Project; and DDA Tehkhand, a slum re-development project were presented by eminent speakers. International best practices of United States, Canada, United Kingdom, South Africa and France were also shared amidst the audience at the Conference. The first session, besides the models for PPP in housing, also deliberated on the housing scenario in the country; the demand and supply dynamics; perspective of the stakeholders including that of the customers, developers and public sector; the need for Public Private Partnership (PPP) in housing; various central & state government initiatives and guidelines for affordable housing; salient features of PPP in housing, strengths and weaknesses of PPP, degree of maturity of PPP, project risk management; guidelines and scope of coverage; and various approaches to PPP in housing which include the virtual land approach, slum rehabilitation approach, subsidy / cross-subsidy approach, rental housing approach, land redevelopment approach, partnership or equity sharing approach and facilitation approach. The second and concluding session dealt with issues of land supply, financing mechanism and use of new materials and technologies such that housing can be made as affordable as possible. "Based on the learning of the domestic experiences of PPP in housing and the relevant international best practices, NAREDCO in the concluding session of the National Conference presented the recommended models for PPP in housing – the Brownfield model of PPP for redevelopment and rehabilitation and the Greenfield model of PPP for development of unused land. The Conference saw participation from senior officers and representatives of Ministry of Housing & Urban Poverty Alleviation, Planning Commission; United Nation Habitat; Housing and Urban Development Corporation Ltd. (HUDCO); Building Material and Technology Promotion Council (BMTPC); state governments; development authorities; housing boards; and local bodies besides the leading private sector developers from across the country. (editor@thesynergyonline.com) NAREDCO
TO PRESENT STRATEGIC REPORT ON PPP IN HOUSING Thesynergyonline Real Estate Bureau NEW
DELHI, OCTOBER 04 : For this, an in depth study of all available models, with their strengths and weaknesses, has been carried out and will be presented by the experts involved in it, which will help in the formulation of the proposed models. Experiences of the public bodies, private sector and public, brought out in the conference, shall also be factored in to it. M/s Knight Frank, an international property consultant will present the outcome of their research done in this area and suggest viable PPP models. Conference is scheduled for October 9, 2009 at India Habitat Centre and several dignitaries of public as well as private sector are participating in the same. The National Conference will be inaugurated by Kumari Selja, Honorable Minister of Housing & Urban Poverty Alleviation and Tourism, Govt. of India. According to Mr. Rohtas Goel, President, NAREDCO (CMD, Omaxe ), “There’s a shortfall of more than 24.7 million houses in India and most of this demand comes from lower strata of our population. Despite best attempts of Government and private sector, this shortage has not been met. There is a need to synergize efforts of Government and private sector for mass social housing on a wide scale. Public Private Partnership is the need of the hour so that mass housing is made possible, houses become affordable and slums can be done away with.” Ministry of Housing & Urban Poverty Alleviation, Govt. of India; Planning Commission, Govt. of India; United Nation Habitat; Housing and Urban Development Corporation Ltd. (HUDCO); Building Material and Technology Promotion Council (BMTPC) and leading private sector developers from across the country will be participating in the Conference. Participation from State Governments at the level of Principal Secretaries, head of Local Bodies, Development Authorities and Housing Boards and Central Govt. at the level of Secretary and Joint Secretaries will make the conference truly an interactive public private platform. Traditionally, housing for economically better offs is being attended to by the private sector and that for economically weaker sections by with the Government. Though, Governments (Central & State), from time to time, have intervened through various policy formulations to boost availability and affordability of houses for all sections of society, however, the economically weaker sections, owing to non availability of affordable housing, have remained deprived and slums have mushroomed in cities, especially the mega cities. It has now been realized that to make housing stock available for the economically weaker section, at prices that they can afford, only policy interventions are not sufficient. The Government of India has announced Rajiv Awas Yojana for urban areas, on the pattern of Indra Awas Yojana for rural areas, in the budget 2009. RAY envisages slum free India in next five years besides addressing the problem of affordable housing for all segments of society. The housing shortage estimated is around 26 million, requiring around Rs. 4, 00,000 crore investment. As the Government, on its own, has failed to deliver the housing stock required due to resources crunch, a way out could be Public Private Partnership (PPP) wherein strength of public sector in land acquisition and regulatory clearances and that of the private sector in capital infusion and construction efficiency could be synergized to overcome the problem of housing shortage. Many Public Private Partnership models have been used in India in last decade to augment housing supply and slum rehabilitation / resettlement. West Bengal model of joint venture between Govt. agencies and private developers, Dharvi, Nagpur and Pimpari Chinchaward models of slum rehabilitation and UP Awas Bandhu model of township development are some of the examples of Public Private Partnership in housing in India . Besides these, many other models of Public Private Partnership have been used in other housing and infrastructure projects. “Every model is unique and each has its strengths and weaknesses. The objective of providing affordable housing to each homeless could best be realized if we analyze them discretely and evolve new models taking strengths and experiences of each model into consideration,” explains Brig. (Retd.) R.R. Singh, Director General, NAREDCO. The Conference on Public Private Partnership in Housing being organized on October 9, 2009 will analyze the experience of each model with the help of the people involved in it as also the other stake holders and evolve such models which would be innovative, transparent and easy to implement, creating a win-win situation for all i.e. the Governments, the private sector and home owners. The issues of land supply, financing mechanism and use of new materials and technologies would be the highlights of the Conference and would be dealt in three different track sessions. The Government is is concerned about the housing shortfall in urban centers and mushrooming of slum clusters because of that. An effort through this conference, is being made to bring synergy between private and public sectors to overcome the problem on a long term basis. If Central Govt., State Govt. and private sector join hands, it will not be difficult to realize the objective of slum free India in next five years. This conference aims to achieve it . (editor@thesynergyonline.com) THE 3C COMPANY UNVEILS 'LOTUS BOULEVATRD ESPACIA' Thesynergyonline Real Estate Bureau NEW
DELHI, SEPTEMBER 18 : The launch of Lotus Boulevard Espacia is a follow on of the enviable market response to 30-acre ‘ Lotus Boulevard ’, wherein end-users flooded to adopt the novel concept of “green housing” and sustainable architecture. “The overwhelming response of the customers towards green development is a proof of growing consciousness towards saving our environment. This has encouraged us to create more such islands of environment friendly developments which aim to create favourable living options for the customers. Espacia is recognition of this demand and one such offering in response to cater to the growing expectations of our customers,” says Mr Surpreet Suri, Director, The 3C Company. Lotus Boulevard Espacia will provide a unique ergonomic environment to all its residents and will offer magnificent features and amenities in line with international standards. The project will also have multi-functional full-fledged “CLUB PLATINO” enveloping options for fitness, games and shopping. A Spa, Swimming pool and Gym will provide total fitness solutions to the residents. For sports leisure, the club will have a Squash Court , a Tennis Court , Opti Golf and a Putting Green. A shopping option in the club will be build to take care of the daily needs of the occupants of this project. In addition to this there is another hub of entertainment and enrichment activities – Planet Lotier that sprawls over an area of 1,25,000 Sq. Ft. Planet Lotier includes Cricket academy by Madan Lal, Fitness centre by Elemention, Dance school by Ashley lobo, Medical facilities by Max Health care, Pre nursery school by Lotus Valley International School, Multi Utility sports hall for badminton, volley ball, Basket Ball and rock climbing wall. It will also have Indoor heated pool, Outdoor pool, Kids Pool and wave pool with Skating rink, open Amphitheatre, Exhibition centre, multi speciality Restaurant, Convenient shopping, and multi cuisine food court. In line with the commitment of The 3C Company to create green developments, Espacia will also be equipped with energy efficient mechanical and electrical equipments to take maximum advantage of natural resources. The apartment layout is being designed to ensure that they are more spacious, airy and set amid greens. Strategically located in Sector 100 of Noida, right off the Greater-Noida expressway, Lotus Boulevard Espacia will have an excellent infrastructure. Close proximity to DND Toll Bridge and upcoming DMRC station provides a superb connectivity to the project with the key locations in Noida. Lotus
Boulevard Espacia comes with round the clock security and back-up for water and
electricity, shuttle bus service to key locations in Noida, professional facility
management, ample parking to ensure maximum comfort to the residents. The project
will be ready for possession in 36 months. HCC REAL ESTATE'S 247 PARK BAGS LEED GOLD CERTIFICATION Thesynergyonline Real Estate Bureau NEW
DELHI, SEPTEMBER 12 : The certification is established by the United States Green Building Council (USGBC) and verified by the Indian Green Building Council (IGBC) The certification, which adopts the most stringent criteria and rigorous evaluation methods, is the world's foremost recognition of environment-friendly constructions. 247Park, which is now a LEED Gold certified green building, is located at Vikhroli (West) in Mumbai. With a built-up area of 1.8 million square feet, 247Park is the next New Age business destination. This 65-metre high complex also houses a helipad on its roof top and possesses the largest combined floor space of one lakh sq ft among Mumbai's stand-alone high-end office complexes. 247Park recently received the 'occupation certificate' from the Municipal Corporation of Greater Mumbai (MCGM). By using less energy and water, LEED certified green buildings save money (for taxpayers and their families as much as for businesses), reduce greenhouse gas emissions, and contribute to a healthier environment for residents, workers and the larger community. On being intimated about the award, HCC Real Estate President Mr Rajgopal Nogja said," HCC Real Estate has pioneered several new standards for environmental conservation in construction in India. Lavasa, free India's first and largest hill city near Pune being developed by HCC Real Estate also has set exemplary standards for efficiency in energy and other resources. This will not only benefit our customers and employees but the standards implemented at 247Park are exemplary for all the brisk business developments being built in the country." The advanced standards of 247Park optimise comfort and utility, thereby making it one of the most environment-friendly buildings in Mumbai and the largest stand-alone commercial complex in India to be awarded this prestigious gold certification. 247Park is equipped to fully recycle all waste materials. The systems installed will ensure that it will consume 24 per cent less energy in comparison to conventional designs." 247Park has met high standards of efficient energy usage, intelligent lighting, water management, indoor environment and materials, resource usage and innovative design. Together, these measures have earned it the coveted LEED Gold certification. The exteriors of the building use double glazed fenestration oriented glass with inert gas filling to eliminate sound pollution, minimise heat gain and maximise daylight incursion to reduce energy consumption up to 24 per cent. 247Park also uses top-of-the-line Membrane Bio Reactor (MBR) technology for sewage treatment. It is also equipped with storm-water management system and rainwater-harvesting facilities. The 247Park is tailor-made to the needs of discerning customers and will be equipped with a gymnasium, business centre and conference facilities, separate drop-off points for office and retail vehicular and pedestrian traffic, banks and ATMs, high-end restaurants and a 24/7 food court with exclusive terraces for private parties. The complex has intrusion-free separate access with ultra modern vehicle-scanning facilities to ensure security. It has three levels of covered car-park space that can accommodate over 1,200 cars at a time. The entire complex has been equipped with state-of-the-art fire detection, alarm and fire fighting systems. (editor@thesynergyonline.com) REDCO -HARYANA LAUNCHED WITH REDCO HARYANA SUPPLEMENT RELEASE Thesynergyonline Real Estate Bureau
The inaugural ceremony of REDCO Haryana was held amongst the founder members, RWAs, Senior Citizens Council and eminent citizens from the community.
The Council will promote and encourage coordination and co-operation amongst the members in various aspects of real estate development including land development, layout, planning, and construction of residential, commercial and institutional building and complexes, development of townships, provision of urban and social infrastructure, architecture and town planning. Speaking
on the occasion, Arun Anand, President, REDCO Haryana described the vision of
the council to be the development of Gurgaon including its physical and social
infrastructure to make it one amongst the top ten cities of the world in a period
of ten years while adhering to a code of ethics and conduct through self regulation.
This vision would be applied to Haryana as
Thesynergyonline Real Estate Bureau
Most Asian cities either recorded a smaller negative net absorption or a mild increase in office requirements. Overall vacancy for Asian cities rose 60 bps quarter on quarter to 12.5 per cent in the second quarter but the rate of increase slowed from 120 bps in the previous quarter. Retaining existing tenants and attracting new ones remained the top priority for office landlords in Asia. In many markets, office landlords displayed a definite willingness to negotiate lease restructuring and offer more incentives to desirable corporate occupiers. However, leasing markets were sluggish overall and office rents remained caught in the down cycle. According to the CBRE Asia Office Rental Index, overall office rents in Asia fell 6.7 per cent in the second quarter, decelerating slightly from the 8.1 pper cent decline witnessed in the previous quarter as most cities underwent a milder rate of rental reduction. Since the outbreak of the sub-prime crisis, rents in leading cities including Tokyo, Hong Kong and Singapore and major commercial hubs including Delhi, Mumbai, Manila and Ho Chi Minh City have corrected by 30 per cent to 47 per cent from their peak. It is expected that the rate of rental decline will ease further in the coming months. In India, the election of a new government and falling interest rates improved local business sentiment during the second quarter. Although there were some small signs of improvement, Mumbai, Delhi and Bangalore witnessed office rents slide further as buildings in the CBD saw an exodus of occupiers as corporates moved to alternative locations in order to reduce real estate costs. Although the rise in demand for less costly premises bolstered office sub-markets outside the CBD, landlords of buildings in secondary office destinations struggled with the consequences of speculative overbuilding and were forced to increase incentives to recruit tenants. The Bandra Kurla Complex and Kalina districts of Mumbai, for example, saw overall vacancy levels rise to 29.4 per cent, while vacancy levels in Noida in the National Capital Region hovered at around 40 per cent. Commenting on the report, Anshuman Magazine, Chairman & Managing Director, CB Richard Ellis South Asia says; "While the second quarter of 2009 observed some improvement in the office market with levels of enquiries going up, vacancy levels continued to remain high. The fall in capital values has also encouraged an increasing number of companies to explore and evaluate opportunities for buying rather than leasing the required office space. There is an improved level of activity in the sector but the markets are expected to remain soft in the short to medium term." Occupier activity in Tokyo was slower than expected in the second quarter. The majority of transactions concluded comprised either renewals in which existing occupiers achieved reduced rental costs in exchange for committing to longer lease terms, or corporate flight to quality in which companies opted for better locations without assuming higher rental costs. Very few new leases signed in Tokyo involved pure expansion, reflecting the present lacklustre demand conditions for prime office space. Several buildings completed in 2008 continued to display large pockets of vacancy while a number of older Grade A buildings also faced difficulty in maintaining satisfactory occupancy levels due to tenant downsizing, relocation to non-CBD areas and bankruptcy. Although economic conditions in South Korea improved during the review period, demand for quality office space in Seoul continued to shrink. The average vacancy rate for Grade A offices climbed to 3.1% in the second quarter from 2.2% in the first quarter. Although landlords maintained the same face rents it became necessary for them to provide more incentives, including longer rent free periods, to retain clients, meaning that office rents in Seoul effectively eased. The Chinese government's implementation of its four trillion Yuan stimulus package continued to help bolster business confidence in China during the second quarter. In Beijing, prime office demand from overseas companies began to rise and a number of major leasing transactions involving foreign companies were completed. However, in Guangzhou it was domestic occupiers, particularly state-owned enterprises with monopolistic positions in certain industrial sectors, who comprised the main source of demand for prime office space. Both cities enjoyed a significant increase in net absorption over the second quarter. Elsewhere, Shanghai edged towards positive absorption as overall sentiment improved, although the city continued to record negative net absorption during the review period. In Taipei, the commercial property investment market performed well in anticipation of closer economic ties with Mainland China, prompting landlords to raise their rental expectations during the second quarter. However, office occupiers seemed disconnected from the optimism displayed by landlords as they struggled to make ends meet under the present tough economic environment. Overall demand for office space in Hong Kong remained weak during the second quarter, directly reflecting the fact that the city is home to a sizeable concentration of MNCs and international financial institutions that have been directly impacted by the current crisis. The Central CBD, which accommodates many overseas banks' Asian headquarters, witnessed an extremely sharp quarterly decline in rentals, and rents remained generally soft across all office sub-markets. The rental disparity between buildings in Central and those outside the district remained significant. Singapore is also home to the Asian headquarters of a large number of MNCs and consequently saw the further weakening of prime office demand during the quarter. Prime rents have now fallen 46.6 per cent from the peak recorded in the third quarter of 2008 and occupancy rates will continue to face pressure from substantial new supply. Singapore has some 8.3 million sf of new office space in the development pipeline between now and 2013 and it seems certain that for the short term at least, supply will continue to outstrip demand.
As anticipated in CB Richard Ellis' first quarter 2009 MarketView, the Asia office occupier market is witnessing demand beginning to stabilise and business confidence turn slightly more positive as clearer signs of economic recovery emerge. However, the recovery Asian economies are currently experiencing is unlikely to translate into the kind of brisk corporate expansion witnessed during the 2005 and 2007 period. Rather, it is anticipated that corporate occupiers will continue to adopt a conservative approach towards real estate decisions, especially those that would lead to an increase in operating costs. With respect to companies in Asia with operations which do not need to be situated in prestigious locations, many remain receptive to relocating these elements to lower cost premises, sometimes even opting for less mature business precincts in exchange for substantial savings. (editor@thesynergyonline.com) TDI
LAUNCHES ' MY FLOORS AT TDI CITY KUNDLI' Thesynergyonline
Real Estate Bureau NEW
DELHI, AUG 08 : The
project which offers Private Floors, at an Affordable Price, comprises of 3BHK
(three bedroom, hall, kitchen) set on 180, & 250 sq.yds plots. In addition
to the efficient area planning of a floor, keeping in mind the needs of a nuclear
modern family, the project offers Low Rise three - storey constructions, keeping
in view the preference for walk-up apartments for environment conscious citizens.
Mr. Kamal Taneja, Chairman, TDI Infrastructures, said, "The TDI Group has
always created value for its customers. Each of our projects start with addressing
the latent and emerging needs of today's customers. The "My Floors"
project addresses the needs of the emerging middle-class who would like to opt
for more space, a suburban lifestyle and yet be within easy commuting distance
of business and leisure locations in the NCR region." Analysing
the demand for low-cost floors, Dr. Kunal Banerji, executive director, TDI Infrastructures,
said, "Our survey of emerging housing trends suggest that people are looking
for value homes which cater to current and future needs. The "My Floors"
independent floors bring down the total cost of ownership with low maintenance,
power back-up for lifts which are not required for ground plus two floor walk-ups.
The value is transferred into the hands of our customers via greater space, better
common amenities and key utilities that make for a complete contemporary lifestyle.
This is our fresh offering of Tier I City infrastructure @ Tier II Prices". Designed
to provide its middle- class clientele a luxurious and international living experience
at affordable prices, "My Floors" at TDI City is situated on the main
G.T. Karnal Road just 2.5 kms. from Delhi Border. The 1600- acre fully integrated
and self-sufficient township will have malls- two of which are already under construction-
a local shopping complex, state of the art health care facilities, and with excellent
connectivity to the central business district in Delhi and other parts of NCR
via the soon to be completed KMP Expressway and proposed Metro line, he added. An ISO 9001 company, TDI's ability to meet the special requirements of the real estate market and clients stems from its strong foundations of professionalism. Every project that bears the TDI signature stands out from the rest, in terms of design aesthetics and global standards of construction. The company's passion for exceeding industry benchmarks is evident in its ability to redefine value engineering, project after project-reinforcing the best of conceptual innovation and cutting-edge construction technologies , Mr Banerji said.. The company consistently set benchmark in property developments by creating world class township and commercial spaces in prime locations such as Kundli, Mohali, Moradabad, Panipat, Agra. (editor@thesynergyonline.com)
3C COMPANY LAUNCHES 'LOTUS BOULEVARD' GREEN GROUP HOUSING PROJECT IN NOIDA Thesynergyonline Real Estate Bureau
Lotus Boulevard is strategically located in Sector 100 of Noida amidst the already habitated sectors - 46 & 47 and right off the Greater Noida expressway. This Green residential estate enjoys excellent connectivity with the key locations in Noida - DND Toll Bridge, Sector-18 Market, upcoming DMRC station, schools, hospitals etc.
Says Mr. Subhash Bedi, Managing Director, Red Fort Capital , "Red Fort Capital
is happy to partner with an experienced developer with funding and strategic support
to ensure timely delivery of a much needed product. This project reinforces Red
Fort Capital 's commitment to the delivery of quality middle income housing in
large metros in India . We congratulate The 3C Company for developing India 's
Largest Green Residential Project and setting enviable benchmarks such as quality
and 21 month delivery for others to follow. We are confident that Lotus Boulevard
will create a rave among customers." To be developed in phases, Lotus Boulevard offers the residential apartments in choice of 2 & 3 BHK units, with areas ranging from 987 Sq. Ft. to 1820 Sq. Ft. approx at a inaugural price of Rs. 2825/- per sq. ft. These apartments redefine modern design through optimum space utilization and elegant interiors which allow 100 per cent natural light to flow in and cross ventilation with a fresh breeze of air. With over 80 per cent of open spaces, all balconies and windows have been specifically designed to burst into the freshness of nature. The developer offers the provision of insulated roofs and walls that substantially reduce heat ingress (up to 60 per cent), thereby resulting in substantially lower air-conditioning loads. Each of the towers are so designed that the orientation of the building is as per the sun path. The project offers all modern amenities for a comfortable lifestyle. Lotus Boulevard comes with round the clock security and back-up for water and electricity. Adding more flavour to the impressive project is, PLANET LOTIER, sprawled over an area of 1,25,000 sq. ft, which forms a part of Lotus Boulevard . Some of the features which make it a green building are the use of energy saving lights, water saving fixtures and fittings, mechanism to recharge the water by unique water harvesting methodologies etc. Divided into five distinctive categories, Planet Lotier will play host to plethora of activities in sports, leisure and entertainment.
·
Features like a shuttle bus service to key locations in Noida, 24x7 security,
24x7 power back up, 24x7 water supply, professional facility management, ample
parking etc. will ensure maximum comfort to the residents. "The possession for the first five towers will be handed over within 21 months from the launch. It is the flawless management and co-ordination of our in-house resources that would ensure that the project is delivered as committed. Prime Location, Green Aspects and Planet Lotier are some of the ingredients that would make sure that this Green Residential Estate elevates the realty market of Noida", added Mr. Brijesh Bhanote, Sr. Vice President - Sales & Marketing, The 3C Company. (editor@thesynergyonline.com) 'MAKE ESCROW AC. ESSENTIAL FOR TRANSPARENCY IN REAL ESTATE' Thesynergyonline Economic Bureau
In addition, the ASSOCHAM has also demanded that real estate developers and all oncerned stakeholders including consumers completely adhere to credit policies and norms communicated by Reserve Bank of India (RBI) and National Housing Bank in real estate projects funding. The
White Paper already submitted to the government by ASSOCHAM President, Mr. Sajjan
Jindal highlights the need for appointing a real estate regulator to ensure that
consumer grievances which continue to rise with increasing instances of customers
complaints against The ASSOCHAM Chief further said that mistrust towards all key stakeholders continue to hamper real estate growth on two dimensions. "One on accounts of limited consumer confidence, resulting delays purchase decisions and second limiting the international activities of industry hampering entry of any major international players", pointed out Mr. Jindal. The Chamber therefore, holds that there is a need for an efficient and focused regulatory body to overlook functioning of the real estate sector in order to insure the industry development and safeguard of consumer interests in line with international benchmark. On the issue of ESCROW ACCOUNT, the ASSOCHAM Paper maintains that in the developed countries like USA, UK, Dubai, Australia etc., it is a very common practice to hold such accounts for any real estate transactions. The real estate industry maintains Escrow account for development of a project and purchase of real estate units and honoring property charges. In India, this facility needs to be encouraged by asking project developers to open an Escrow account where fund flow from any financial institution to develop the project is deposited and accordingly any payment related to the development of the said projects will only be disbursed from the said account. Even the buyers of property is suppose to deposit the agreed property price with his developers in the escrow account so that money is kept safe and not transferred to the seller until final possession of property is handed over. Such accounts are also maintained for honoring property charges, insurance liabilities and maintenance charges on regular basis. In view of ASSOCHAM, real estate developers should be asked to open up Escrow account so that complete transparency is maintained and real estate industry returns on rails because of demand factors. Responsibilities of financial institutions for projects funding in real estate sector should be strictly adhered to by all concerned stakeholders as per norms and directions of RBI and National Housing Bank. This is to ensure that loans granted to developers for development of real estate projects are utilized for the purpose for which they are granted. In
addition, the responsibilities of Development Authorities should be to ensure
that all constructions taking place under their jurisdiction have all the necessary
approvals in place and grant necessary approvals in conformance with the laws
within a stipulated period of time. The development authorities should also ensure
that all external development charges and internal development charges collected
from the developers are utilized towards the works for which they have been collected.
(editor@thesynergyonline.com)
NY STILL WORLD'S MOST EXPENSIVE RETAIL MARKET DESPITE RENTAL FALLS, NEW DELHI AT 69th POSITION Thesynergyonline Real Estate Bureau NEW
DELHI, AUG 03 : Demand for retail space has declined in most markets across the world as consumers cut back on spending and unemployment continues to rise in many countries. New Delhi in India saw a 25 per cent decline in a six month period. Emerging and less established markets have been most significantly affected. Buenos Aires saw the largest annual decline in retail rents year-on-year with a drop of 37%, followed by Warsaw with a 33 per cent decline and Washington DC with a 26% decline. Whilst some markets have continued to experience year-on-year increases in retail rents, in many cases the current pressure is downward. Prime
retail rent represents a typical open-market headline rent that an international
retail chain can expect to pay for a ground floor retail unit (either high street
or shopping centre depending on the market) of the highest quality space in the
best location in a given market. Commenting on the report, Anshuman Magazine, Chairman & Managing Director, CB Richard Ellis said, "Rentals in Delhi NCR have corrected further when compared to the beginning of 2008. Retailers feel that rentals have corrected to sustainable levels and are using this period judiciously to take up positions on favourable terms. Rentals are also being renegotiated to make retail operations financially viable. Another trend that has been witnessed during this time is of developers adopting a renewed stance towards revenue share agreements, as opposed to earlier, when the demand situation was more favourable." Nick Axford, Head of EMEA Research and Consulting, CB Richard Ellis, commented: "With unemployment rising and consumer confidence and spending weakening across most parts of the world, most retail property markets are experiencing reduced demand from retailers and an increase in the number of vacant units, which is in turn affecting rents. More profitable retailers are actually jumping on rare opportunities to move into prime units whenever vacancies emerge in top high street locations," Axford added. Leasing activity in major Asian retail centres remained mostly weak in the first quarter of 2009 as retail brands continued to delay expansion plans or closed down underperforming outlets. Hong Kong ranks as the world's second most expensive retail rental market, with values of $975 sq ft per annum. Further declines in prime retail rents have been recorded in Beijing, Tokyo, New Delhi and Singapore. Guangzhou was the third fastest growing market for retail rents year-on-year, but has seen rents decline slightly in the past six months. In the Pacific, the most expensive retail location is Sydney, Australia, with rents of $624 sq ft per annum.
U.S. cities continue to lead the most expensive retail rents in the Americas region. Los Angeles and San Francisco rank at ninth and tenth positions within the global ranking, following New York as the most expensive destination in the world. Yet with vacancy rates for all property types continuing to increase in the U.S., the first signs of rental decreases have been seen across most key American cities in the first quarter of 2009. Retail spending has been fluctuating in Latin American countries, and retail rents in the region have been affected to varying degrees, with Mexico City and Buenos Aires seeing retail rents fall by 14 per cent and 37 per cent respectively year-on-year. (editor@thesynergyonline.com) REAL ESTATE REGULATOR BILL HOSTILE TO INDUSTRY , NEEDS REVIEW Thesynergyonline Real Estate Bureau NEW
DELHI, JULY 16 : Contrary to expectations, the draft bill does not allow Real Estate Regulator to act as an impartial arbitrator between industry/developer and various government agencies on one hand and the industry/ developer and consumers on the other. For example, while the Regulator will lay down and monitor strict timelines for execution of a project (with severe penal implications for the promoter/ developer), it will do nothing to address the inevitable delay and harassment that accompanies various approvals and make there timelines impossible to adhere to, points out the ASSOCHAM. In a representation addressed to the government, the ASSOCHAM has emphasized that the draft Bill is also discriminatory in as much as it keeps the government agencies/ local authorities/ statutory bodies engaged in the business of development of land or housing out of the ambit of the Regulator. Similarly, while the Bill treats the promoter/ developer in an iniquitous manner, it is biased in favour of the allotee. In addition the Bill is self contradictory as the Regulator is being given the role of licensing authority as well which is against basic principles of liberalized economy. ASSOCHAM President Mr. Sajjan Jindal said, ?Section 4 of the Bill has a provision which makes it mandatory for developer to take registration certificate from component authority for release of advertisements to seek buyers for their Real Estate projects. And if advertisement released is without registration certificate, developers are liable to punishment for a term of upto one year or fine Rs. 5,000/- or both. According to the Chamber , this is a sweeping provision and is clearly restrictive. The Regulator may have the right to check the veracity of the claims made in an advertisement but giving it a veto power in this regard is a clear violation of the right to conduct business and punishment are too harsh. Likewise, the bill's Section 5 under head of development of land into colony says that licence for development of colony should be given by competent authority and will be valid for three years and renewable from year to year on payment of prescribed fee. This too is a sweeping power and a recipe for corruption, according to ASSOCHAM. It reintroduces the licence raj which is an anathema in this post reform age. The terms too are stringent. The licence is valid only for three years while the various approvals for a project from a slew of government agencies alone take up to 18-24 months. Moreover, land is a state subject and each state authority may have different set of criteria for granting such licenses.? Therefore the aforesaid Sections need to be diluted as per requirements of industry and consumers. Mr. Jindal said, there are many other provisions in the Bill which require promoters of Real Estate to construct schools, hospitals, community centres and other community building and lay park in the colony or transfer such land free of cost/ at cost of development. This is again a harsh provision and shows callous disregard for freedom to conduct business and needs modification. Likewise there are many other provisions which need review and therefore the ASSOCHAM urges the government to launch a debate on provisions of existing Regulator Bill so that its harsher sections, sub sections are diluted with a consensus approach to ensure fair play for government, Real Estate developers and buyers of properties and dwelling units, said the ASSOCHAM Chief. (editor@thesynergyonline.com)
Thesynergyonline Real Estate Bureau DELHI,
JULY 15 : Mr David Wittenberg, CEO, The Innovation Workgroup, US, said "innovation is the only way to grow in tough times." Citing instances of how those companies that undertook disruptive innovation showed 20-40 per cent higher growth than the average in a slowdown, he said that there was need to strategize and innovate for the future. Welcoming the participants, Mr Rajesh Srivastava, CMD, Rabo Equity Advisors Pvt. Ltd., said that business strategists and planners must track the economic scenario in a dynamic fashion and that looking at just the top line was not the only solution. Speakers focused on the context for sustained growth. With regard to the real estate sector, Mr Rajeev Talwar, Group Executive Director, DLF, called for policy reforms, stating that the regulatory environment is very opaque and the finance regime is very restrictive for growth. Mr. Talwar stated that in current scenario, FDI is a must to boost the growth in the real estate sector. He further added that divestment of banking and insurance PSUs will inject $40-50 bln in the system which in turn would help building the infrastructure of the country. Earlier, Mr S K Bijlani, president, Magnus Consulting, cautioned managers against misreading the current situation and said that it was important to rethink our strategies. Speakers noted the current situation was "not a cycle but a reset", which demanded new strategies and new ideas. As Mr Harpal Singh, Chairman Emeritus, Fortis Healthcare Ltd, said, "when we look back at this time, we will see it as very significant." There is a pivotal shift is power, both economic and political, eastwards. He opined that the solutions lay "not in adopting best practices but next practices." A contrarian view was presented by Mr Mohan Guruswamy, Chairman, Centre for Policy Alternatives, who pointed out that the effects of a slowdown, if any, was felt by the already marginalized and poor. This should be considered by our planners, he said.
The CII conference highlighted issues in the four identified sectors of real estate,
agribusiness, manufacturing and financial services. Both demand and supply side
issues were highlighted by presenters along with credit and exchange rate related
problems faced by companies. (editor@thesynergyonline.com)
REGULATORY BODY FOR REAL ESTATE SECTOR MOOTED Thesynergyonline Real Estate Bureau NEW
DELHI, JULY 03 :
We hope that with the new UPA government now firmly entrenched, a status to be given to the body of real estate developers. We have made this request several times in the past but it seems to have fallen on deaf ears. As an industry, after agriculture, we are the second largest indirect employers with over 270 other industries depending on us and our constructions for work and business. While other less significant industries have received a status, we still struggle to be heard. We also want a regulatory body to be formed for the Real Estate sector. One that will not only regulate what we do but also one that will regulate other third parties that we interact with including the government. One of the most common grievance shared by all real estate players is that approvals take very long to come in which results in inordinate delays of time and money and that snowballs in to a tremendous loss of goodwill and getting the reputation of being developers that do not deliver on time.
The third and most important expectation is that the government takes over the
mandate of affordable housing. Owning a home of their own is a dream that everyone
has. The market for super luxury, luxury and even mid level residential housing
is not growing as much as the demand for affordable housing. Affordable Housing
is an area that is usually the mandate of the government but unfortunately in
India , this segment has been neglected by the government and so the real estate
sector has taken the onus upon themselves. However, as a representative of the
real estate industry, what we would like is for the government to look favourably
upon those developers who are promoting and building affordable housing by bring
back the tax cuts and subsidies that were once given by the government.
(editor@thesynergyonline.com)
GDP
CAN GROW BY 1-1.5% IF HOUSING SECTOR GETS BOOST Thsynergyonline Real Estate Bureau NEW
DELHI, JUNE 25 : The recommendations put forth by CREDAI, the widest consensus of real estate developers in India, are very much aligned to the announced objectives of the Central Government on using infrastructure development to revive the economy. The real estate industry believes that it has the potential to play the role of the steam engine basis the fact that real estate sector alone can add to the GDP bottomline by 1-1.5% if efforts are made to reduce the shortage of urban housing while moving towards a slum free urban India. The expectations recently shared in a pre-budget memorandum to the Govt of India are also derived from the prioritisation of affordable housing aforementioned in the Deepak Parekh Task Force Report constituted by the Ministry of Urban Development and Poverty Alleviation. CREDAI has suggested fiscal incentives for encouraging 'Affordable Mass Housing' in 300 - 600 sq.ft and up to 1000 sq.ft by providing subsidy in interest payable by home buyer The Eleventh Five Year plan has estimated the urban housing shortage of 24.7 million units with 99% of the shortage pertaining to Economically Weaker Sections (EWS) and Lower Income Group (LIG). Home ownership is critical for this segment not only for economic reasons but also for the health of the nation from a social perspective in terms of stability, law and order and education and employment Recommendation
II: Slum Redevelopment The President of India in her address on 4th June 09 has announced the intent of the government to make urban India slum free by five years. Around 80 million urban poor live in sub-standard or unsafe housing conditions under the abuse and continuous threat of displacement. From the slum dwellers perspective there is an additional tax burdens puts dampners. From a developer's perspective in the context of slum redevelopment, arrangement for pre-sale financing is difficult because of the perceived risk factors. From the government's perspective land is scarce, and with the migrant population increasing every year, redevelopment is critical to the orderly development of cities. The improper of utilisation of land is uneconomical and from the government's perspective.
The entire interest on funds borrowed for acquisition/ construction of self occupied residential house property, deduction to be allowed in the affordable housing category In other developments outside the affordable housing projects, deduction up to Rs. 3 lakhs per annum to be allowed and up to Rs 5 lakhs per annum to be allowed in Tier 1 cities Deduction U/S 80 C for repayment of principal portion of housing loan for self occupied residential house property In addition to the present composite deduction up to Rs. 1 lakh, a separate limit of up to Rs. 2 lakh deduction may be permitted for repayment of principal portion of home loan for self occupied residential house property to encourage affordable housing sector and the middle class to have more disposable income This
impetus is required keeping in mind that amounts were fixed six years ago and
real estate prices have catapulted since then. Beside the deductions, impetus
is required to be given to the large middle class in the affordable housing segment
to increase their net disposable income as it would have a direct impact on the
consumption and hence the economy.(editor@thesynergyonline.com)
MUMBAI
DROPS TO 6TH PLACE IN RANKING OF WORLD'S MOST EXPENSIVE OFFICE MARKETS ; DELHI
AT 12TH PLACE Thesynergyonline Real Estate Bureau NEW
DELHI, JUNE 05 : London's West End, is now the world's second most expensive office market, followed by Moscow, Hong Kong's Central Business District or CBD, and Tokyo's Outer Central District in the CBRE report, which tracks office occupancy costs in more than 170 cities around the globe. Anshuman Magazine, Chairman & Managing Director, CB Richard Ellis South Asia says, This ranking highlights the decrease in rentals we have witnessed in the last six months due to a reduction in demand. However, Mumbai continuing to be in the top 10 and Delhi being at 12th place reflects the shortage of prime office supply in India. To reduce office occupancy costs further and facilitate more supply of office space we need to urgently improve our infrastructure and amenities. This would bring our world rankings down further and make India more competitive." Financial centers have been most significantly affected by declining occupier demand and, as one would expect, registered the most material decreases in office rents. In many cases, major global office markets have seen occupancy costs fall by 20 per cent or more over the last 12 months. Across the 170 cities as a whole, office occupancy costs fell 2.8 per cent over the 12 month period ending March 31, 2009 (on an un-weighted average basis) compared with an increase of 8.0 per cent in the 12 month period ended September 30, 2008 Singapore had the largest year over year decrease in occupancy costs with a drop of 34 per cent. Some markets did record increases in costs over the last 12 months but these markets-such as Charlotte (U.S.), Marseille (France) and Perth (Australia)-are very much the exception rather than the rule. Generally, these increases are either due to exceptional local market conditions, such as the completion of a top quality new building in a market where none was available previously, or simply that occupancy costs remain above the level of a year ago despite the fact that they are now falling. Such situations illustrate the uneven way in which the economic downturn is affecting different markets around the globe, according to the CBRE report. "The great global recession has clearly taken its toll on the world's office markets, particularly those with significant concentrations of financial industry employers," said Dr. Raymond Torto, CBRE's Global Chief Economist. "The most expensive office markets, as measured in dollars, are considerably less expensive than a year ago and occupiers are now in a strong position to procure prime space at attractive costs. For instance, a year ago office space in London's West end was nearly $300 per sq. ft., while today that space goes for $172 per sq. ft." Tokyo (Inner Central) was the world's most expensive market with an occupancy cost of $183 per sq. ft. Hong Kong (CBD) was the fourth most expensive global market with occupancy costs of $150 per sq. ft. Tokyo (Outer Central) and Mumbai were the other two Asia-Pacific markets in the top 10 most expensive cities roster.
Singapore, while experiencing the largest drop in occupancy costs, was not alone among Asia-Pacific financial centers in seeing a sharp decline. Hong Kong, Tokyo and Mumbai posted large drops in office occupancy costs. Conversely, Perth had the second fastest growing occupancy cost during the past 12 months with costs rising 22 per cent, although it's important to note that the increase took place in 2008. London's West End was the world's second most expensive office market at $172 per sq. ft. and Moscow was a close third with occupancy costs at $170 per sq. ft. Dubai, Paris, the City of London and Dublin all were in the top ten most expensive markets. Twelve
cities in the region posted doubled digit declines in office cost. Moscow had
the sharpest decline in the region followed closely by Oslo (Norway), while occupancy
costs in London's West End, previously the most expensive market in our report,
fell 20 per cent. The most expensive office location in the Americas is still New York's Midtown with occupancy costs of $68 per sq. ft. However, that market's occupancy costs declined 32 per cent--the second steepest decline in the global survey. While occupancy costs in New York's Midtown are high for North America, it ranked just 21st globally. Boston's suburban market posted a decrease of nearly 30 per cent, putting that market in fourth position in the top decreases chart in the report. São Paulo (Brazil) posted the Latin American region's highest occupancy costs at $57 per sq. ft. and is ranked 33rd globally. Latin America has held up better than the rest of the world with only three cities posting small negative growth rates, the worst being Mexico City with a 5.6 per cent decrease. Nine markets in North America posted double digit declines. (editor@thesynergyonline.com) AVANTA SERVICED OFFICES SPACE DEMAND IN INDIA ON RISE Thesynergyonline Real Estate Bureau NEW
DELHI, JUNE 05 : "With the current economic trend corporates are now avoiding heavy investments and opting for serviced offices. Therefore, our office space solutions with no upfront costs, immediate access, flexibility to upsize or downsize, have resulted in reputed corporates signing up in the past few months. Also, looking at the overwhelming response we are sure our serviced office centres in Mumbai and New Delhi will continue to grow substantially in the months to come." said Mr. Amit Bansal, Sales & Marketing Director, Avanta India and Middle East. The prime locations, flexibility and immediacy are the other factors that have helped Avanta to garner new businesses. The existing clients, who are operating out of the company's serviced office facilities, both in New Delhi and Mumbai, are quite satisfied . They have realized that opting for serviced office has optimized their executive time & that they can concentrate on their core business. This is mainly due to the fact that all operational & maintenance of the centers are taken care by Avanta's professional service team , he added. UK India Business Council's Country Director Adrian Mutton is one such satisfied client. Commenting on the decision why UKIBC chose Avanta he said, "We have looked at many options before moving into Avanta. The main issues for taking this decision were that we could operate from day one as there was simple documentation and the serviced offices were fully equipped and functional. Here we can concentrate more on our business than looking into basic requirements of running an office, which take so much of executive time apart from cost to the company. Also, it is almost like owning our own office as Avanta premises are unbranded." Avanta's Bandra Kurla Complex serviced office facility in Mumbai, which has over 500 workstations to offer, has recently leased 100 workstations to a large corporate house. Avanta not only accommodates large office space requirements, but also provides office spaces for small to medium size business as well. "We're still only a team of 10-15 people. So we didn't want to invest in a huge office right away. But then we may need to add more people in the coming months, Avanta offered us the flexibility that conventional offices don't - a compact office for now, with the option of upgrading to a bigger office in the future, in the very same building', said, Mr. Atul Bhatia, Manager Business Development, Astonfield Solar Private , who have taken up an office in Avanta's Connaught Place center, New Delhi. Avanta India currently has three serviced office facilities. Statesman House located in New Delhi's prime business district of Connaught Place is spread over four floors with 20,000 sq ft of space. In Mumbai it has 2 serviced office facilities - Oval House in Fort (20,000 sq ft spread over 7 floors) & Platina at Bandra Kurla Complex, the largest serviced office facility in India (50,000 sq ft spread over 2 floors). (editor@thesynergyonline.com) REAL ESTATE RECOVERY COMING IN 3 MONTHS Thesynergyonline Real Estate Bureau NEW
DELHI, MAY 29 : The ASSOCHAM Business Barometer (ABB) Survey on “Flowing Sentiments in the Real Estate Sector” released here today by its President, Mr.Sajjan Jindal says “based on an expert (focus) group of 25 real estate firms, found 88 per cent of respondent CEOs sensing a quick revival in the sectoral activity within next three months as developer’s strategic shift towards affordable housing and a significant price correction in the housing projects has pepped up the sale of residential property”. As per the Survey (conducted between May 15 – 25, 2009), a whopping 92 per cent of the respondent developers considered affordable housing as the most dominating segment to shore up the demand in real estate sector. The policy actions supplementing the robust demand in the housing sector is likely to hold the key for a speedy recovery phase in the sector. With developers’ concentrated efforts to target the lower and middle income consumer group during the downturn, 84 per cent of the surveyed CEOs signaled the least impact (in terms of demand contraction) in the affordable housing segment. According to the Survey, at a time when luxury housing (more than 50 per cent), SEZ (40 – 50 per cent), retail space (30 – 40 per cent) and commercial space (20 – 30 per cent) were witnessing steep contraction in demand, affordable housing was the single most resilient segment with a minimal contraction of zero to ten per cent. On the policy front, the surveyed CEOs sought single window clearances for all schemes under affordable housing in the line of SEZ clearances to enable fast development of units and achieve the short fall of about 26 million houses at the earliest. A majority of 76 per cent of the ABB respondents viewed the stimuli given to the sector through fiscal and monetary measures as inadequate to help boost the demand-supply scenario. However, of all the measures taken by the RBI and the commercial banks, 64 per cent of the respondent CEOs were of the view that RBI’s allowance to banks to restructure loans to developers has been the most successful in improving the liquidity for real estate sector. In the present market scenario, 60 per cent of the surveyed CEOs perceived resurgent stock market as the most prominent source of finance to fund the sector’s cash requirement, followed by 28 per cent viewing bank credit as the best viable option. Hefty funds raised through QIPs in the stock market (exceeding Rs 8,000 crore) along with debt restructuring would allow the developers to manage their cash flows even more efficiently to address their liquidity concerns. Almost 92 per cent of the respondent CEOs strongly agreed to the need to unify stamp duty on property across all the Indian States. The surveyed developers also sought reduced stamp duty charges to increase revenue and avoid duty evasion. Among other policy issues, respondents asked for a central regulation body, recognition of real estate sector as industry, further relaxed norms for ECB and FDI along with a need for speedier and hassle free statutory approvals. The Survey also found that metropolitan cities has been the worst affected market segment whereas tier II cities have been seen as the most promising one to boost up the sector as commercial activity moving to these cities and their greater yield has given a tremendous impetus to investment in the these market segments. Among the six metropolitan cities, the financial capital of India, Mumbai, has been ranked first as the most saturated in terms of real estate assets (both commercial and residential) followed by Delhi NCR (second) and Bangalore (third) whereas Chennai, Kolkata and Hyderabad were ranked fourth, fifth and sixth respectively. (editor@thesynergyonline.com) TATA REALTY TO DEVELOP RS 20,000- CRORE PROJECTS OVER 3 YEARS Thesynergyonline Real Estate Bureau NEW
DELHI, MAY 28 :
Tata Reralty , a 100 per cent subsidiary of Tata Sons, is focused on developing long-term infrastructure projects of national significance, as well as large and FDI compliant real estate projects.
On the real estate front, the company is currently developing a state-of-the-art, 25 acre IT/ITES SEZ at Chennai. The project, costing approx Rs. 3,800 crore, will also house an international convention centre, the first-of-its-kind in Chennai. TRIL is also developing world class IT SEZs in Ahmedabad and in Hinjewadi (Pune). The 3 SEZs will seat over 40000 IT professionals.
The company has also commenced the development of a 7 lakh sq. ft. retail complex in the heart of the holy city of Amritsar on a 6 acre land parcel, Taj hotels would add a world class facility on the adjoining plot to make this into a new city centre.
The company is presently evaluating residential and mixed use development on a 35 acre plot at Gurgaon. The residential development will be targeted mainly at the salaried middle income group.
To fund these and other real estate projects, TRIL has raised an offshore Fund aggregating USD 700 MM. Over the next three years, an investment of Rs 6500 crores would be made in the real estate sector.
On the nfrastructure front, the company has identified key thrust areas including roads and bridges, urban infrastructure (comprising metro/monorail projects), airports and logistic parks.
Projects under consideration include: Metro projects (in partnership with Mitsubishi Corporation), New Delhi Railway Station redevelopment (in partnership with Grandi Stazioni), Amritsar & Udaipur Airports (in partnership with Changi Airports India – CAI), Roads & Highways (in partnership with Atlantia S.p.A), and Logistics Parks across India .
Tata Realty through its wholly- owned subsidiary, Navinya Buildcon , and its partner Atlantia S.p.A ( Italy ) has been awarded the 4-laning of Pune-Solapur Highway by the National Highways Authority of India (NHAI). Atlantia is one of Europe ’s largest toll motorway builder and operator. It currently manages over 3400 Kms of highways in Italy . This initiative marks a significant milestone in Tata’s entry into the highways development sector. TRIL’s endeavour would be to build world class highways that will incorporate safety features and facilities such as electronic tolling, wayside amenities etc. The 110 kms long stretch is expected to cost approx Rs. 1400 crores. The concession period for this project is 21 years, including the construction period. The project is expected to be completed by December 2011 Over the next three years an additional investment of nearly Rs 3500 crore would be made in the highway development programme of NHAI and some of the states like Maharashtra, Gujarat, Tamil Nadu, Madhya Pradesh, Punjab and Andhra Pradesh. (editor@thesynergyonline.com) DUBAI-BASED PEARL DUBAI FZ LLC IDENITIFIES INDIA AS INTEGRAL COMPONENT OF GROWTH STRATEGY Thesynergyonline Corporate Bureau NEW
DELHI/ DUBAI, MAY 28 : The strategic partnership between Dubai-India assumes significance in the context of the recent rising stock-markets and invigorated market conditions in India. Pearl Dubai FZ LLC has recently announced a tieup with MGM Mirage, who will be developing Bellagio, MGM Grand and Skyloft Brands at Dubai Pearl, a USD4 billion (AED15 billion) world-class, fully integrated luxury development in Dubai, United Arab Emirates. Abdul
Majeed Ismail Al Fahim, Chairman, Pearl Dubai FZ LLC said: “We at Pearl Dubai
believe that the potential for collaboration between Indian investors and us is
great. Dubai has historically been open to investors from India and the fact that
there is such a large NRI community in Dubai adds to this factor. We are seeing
a renewed interest in our project from the Indian community and are glad to say
that India is a key component of our plans and we look forward to exploring this
extensively in the near The NRI and celebrity interest in Dubai goes back to several decades. With several top celebrities frequenting Dubai for visit as well as work, the emirate has become a hot destination for both real estate related activity as well as entertainment and branded real estate has assumed great significance in recent times. With
respect to the most recent announcement about MGM, Pearl Dubai FZ LLC will own
and finance the 250-room Bellagio hotel, 350-room MGM Grand hotel,and 30-suite
Skylofts hotel, while MGM MIRAGE Hospitality will manage and provide technical
services for the three new ventures. The agreement includes the development of
Bellagio branded luxury residences, in addition to featuring world-renowned dining,
entertainment, spa and convention that Santhosh Joseph, President and Chief Executive Officer of Pearl Dubai FZ LLC said: “The project’s entertainment elements will help complete the vision of making the Dubai Pearl a true landmark that will deliver an unforgettable experience through its diverse components and unmatched services.” Located opposite the Palm Jumeirah Island in the heart of the Dubai Technology and Media Free Zone, Dubai Pearl is a landmark destination designed to offer spectacular views of the Arabian Gulf. Through integrating first-class facilities, it will shape a pedestrian friendly, 24-hour living city that with a spectrum of commercial, retail, residential, hospitality and leisure components. Dubai Pearl will also boast a 2000 seat performing arts theatre aimed at meeting the needs of Dubai’s growing cultural calendar and complementing the project’s entertainment offering. Featuring an active business district with a quality urban lifestyle, the development will be host to the world’s top brands and include sky palaceswith private pools and landscaped gardens, luxury branded apartments and condominiums. (editor@thesynergyonline.com) 15 REALTORS COME TOGETHER TO PROMOTE RAJ NAGAR EXTENSION Thesynergyonline Real Estate Bureau NEW DELHI, MAY 22 : FINDING a home that fits into your modest budget may look like a dream, but it may not be impossible anymore as Raj Nagar Extension on NH-58 is the upcoming budget lane for the buyers. This place caters solely to the middle class stratum of the society . Budget homes being the new buzzword led to the formation of Raj Nagar Extn. (NH 58) Builder's association, a collective effort of 15 renowned names of the real estate industry to promote Raj Nagar Extension as an impending connoisseur's delight for those who wants to own a dream house of their own. The place enjoys the status of being NCR's most well planned city having high connectivity with Delhi as well as Noida (15 min. drive), Greater Noida (35 min.), Vasundhara (10 min.), Indirapuram (10 min.), Vaishali (10 min.), Meerut and Hapur (40 min.). Not only this! The other major development taking place is the construction of six -lane expressway connecting G.T. Road with NH-58 which eventually goes straight to Dehradun via Meerut apart from the metro rail which is on the verge of knocking the doors of Raj Nagar Ext. (NH-58), which surely will help the customers at large. The Association comprises the who's who right from Ashiana homes, SVP, SG Estates, Landcraft, KDP Infrastructure , Shreya Developwell , Shree Energy Developers , Ajnara Farms & Services, Ascent Buildtech, Nitishree to upcoming developers like High End Infratech, Krishna Asset Reconstruction, MCC Builders, Quantam Buildwell and Shomit Finance. According to Mr. Manu Garg (Spokesperson, Raj Nagar Ext. (NH-58) Builder Association), "The initiative taken by each builder of the association has out stepped the clichéd notions of lifestyle. The new era demands modern amenities and luxurious living but at affordable prices thus that being the sole reason of this joint effort of promoting Raj Nagar Extension as the next budget lane". Raj Nagar Extension is a one stop destination for the clientele where they have wide variety to choose from right from a 1BHK ranging from Rs 12 lacs to a 3 Bhk of 40 lacs with amenities likes Entertainment Zone, Shopping Paradise, jogging tracks, in other words you name it you have it there and the icing on top being their unique affordability plans through tie ups with banks like HDFC, ING, Axis, UBI, ICICI, LIC Housing and SBI etc thus cutting down all the add on burdens from their customers minds and as well as their pockets. (editor@thesynergyonline.com) MUTED PROPERTY INVESMENT TURNING MORE POSITIVE AFTER MUTED Q1 Thesynergyonline Real Estate Bureau NEW
DELHI, India , MAY 13 : The overall property investment market in Asia was generally subdued and remained in a prolonged state of price discovery. The period was characterized by isolated and small investment transactions across certain markets. The
ongoing credit crunch, uncertainty over market direction and significant bid/offer
price gap continued to deter major investment activity. Nevertheless the period
witnessed the establishment of a number of new funds looking to capitalize on
opportunities arising from the market's current distressed situation, a trend
first witnessed in the latter two quarters of 2008. Activity
in the Indian real estate investment market continued to be slow under the impact
of the global economic downturn. There was a further drop in end-user activity
which in turn caused a correction in prices across the various segments. Commenting
on the report, Anshuman Magazine, Chairman & Managing Director, CB Richard
Ellis, South Asia said; "The Indian real estate market more or less mirrored
the Asian markets with declining transaction volumes, scarcity of capital, etc.
The investment market in India would see a revival when the global sentiment stabilizes
and international and domestic financial institutions and equity funds get the
confidence to participate in the market." Preliminary
data for the first quarter of 2009 found that Japan, Singapore and Hong Kong suffered
the biggest falls in sales volume. The industrial property sector underwent the
largest drop by market segment, plummeting 95 per cent from the same quarter a
year earlier. Office property transactions slid 89% and retail property transactions
fell by 40 per cent. Prime
office properties continued to attract the biggest interest from investors, accounting
for seven of the ten largest deals recorded during the quarter. The combined value
of the ten largest transactions was US$1.7 billion, a drop of 81% from the same
period in 2008. Eight of the ten largest deals involved domestic investors, reflecting
the further decline of cross-border investment activity. The
tight lending conditions continued to impact the market for commercial real estate
in Japan and South Korea. Investors in both markets found it difficult to raise
equity, resulting in an increase in inventory and decrease in overall transaction
volume. In Japan there was a noticeable trend for lenders to place more emphasis
on the quality of assets, making it virtually impossible to obtain finance for
the acquisition of certain assets, a trend also observed with regard to refinancing
as property prices continued to fall. In
Greater China, investment sentiment rallied on the back of increased confidence
in the recovery of the domestic economy. Transaction volume nevertheless remained
low owing to the ongoing market slowdown and falling capital values. However,
the quarter did see commercial banks gradually relax their requirements on property
lending and lower their mortgage rates as interbank liquidity increased after
several rounds of government intervention. Singapore
experienced further declines in investment sales in the first three months of
the year and saw only a few isolated transactions. Total investment sales amounted
to S$204.2 million (US$134m), a decline of 51.8% from the previous quarter and
a fall of 97.7 per cent from the first quarter of 2008. The last time quarterly
investment sales were at such levels was in the first quarter of 1998 when they
stood at S$49.28 million (US$32m) and in the third quarter of the same year when
they were S$110.62 million (US$73 million). There was little investment activity in Thailand during the first quarter as bank financing remained extremely difficult to obtain. Interest from overseas investors was limited. The Indonesian and Malaysian markets were quiet, although they did not weaken as much as other markets around the region. (editor@thesynergyonline.com) ASSOCHAM SUGGESTS LOW COST HOUSING PROJECTS IN RURAL AREAS ON PPP BASIS Thesynergyonline corporate bureau
An ASSOCHAM report on Rural India has shown that central government has spent Rs.189898.56 crore for constructing 171 lakh houses under the‘Indira Awaas Yojana” implying the cost per house comes as Rs.1,11,000. However,
the desired results under the Scheme have not been fully achieved as there is
a problem of land availability, clearances byforest department, delay in release
of funds and lack of basic amenities in the houses constructed. Resultantly, most
of the houses remainabandoned.Releasing the report, Mr. Sajjan Jindal, President
ASSOCHAM said thatthere is a huge backlog of house requirement which needs to
be fulfilled and recommended that the Indira Awaas Yojana Scheme under
the umbrellaof ‘Bharta Nirman’ programme should be renovated
for more effectiveness. There
is a strong case for private sector participation to bring in the right technology
for low cost houses reach to the masses, and ensure fast tracking of the project,
further said Mr. Jindal.The Indira Awaas Yojana was launched in 1980 as a cash
subsidy based programme, under which assistance is provided to rural BPL families
for constructing dwelling units on their own using their own design and technology.
Engagement of contractors is prohibited and no specific design has been stipulated
for an IAY house.The ratio of funding between the centre and state governments
is 75:25. About
60 per cent of the funds provided under IAY are meant for SC and ST beneficiaries
and the subsidy is sanctioned in the name of female member of the household or
jointly in the names of both spouses. The present per unit assistance is Rs.25000
in plain areas and Rs.27,500 in hilly and difficult areas. The Government has
raised unit assistance limits for an IAY house in plain areas to Rs.35000 (from
previous While the government was able to achieve 99 per cent of the physical target of construction of houses between FY2000-01 to FY2006-07, the achievement rate fell to 51 per cent in FY2007-08. Number of houses constructed under the scheme fell to 10.9 lakh in FY2007-08, from average 15 lakh in preceding three years.While the scheme has been showing satisfactory results in terms of physical target achievements, the program has been flouting on many respects. There has been the problem of delay in release of funds. Most
of the houses lack on the essential aspects like smokeless chulhas and toilets.The
Indira Awaas Yojana Scheme suffers from many issues such as unavailability of
land. Land should be available in adequate quantity, The
housing structures remain abandoned, sanitation is the big problem. The practice
of selecting the beneficiaries for the Scheme by gram panchayats is not done on
fair basis and lack transparency at ground level. Among the states, Bihar (4.21
million), Assam (2.24 million), Andhra Pradesh (1.35 million) and Uttar Pradesh
(1.32 million) face the maximum shortage of houses in the rural areas.States with
maximum Housing Shortage in Rural Areas.(editor@thesynergyonline.com)
AWARDS GALORE FOR TATA HOUSING AT ASIA PACIFIC PROPERTY AWARDS Thesynergyonline Corporate Bureau NEW
DELHI, MAY 03 : The awards are the Asia Pacific edition of the International Property Awards, the industry’s most prestigious award programme globally. The
International Property Awards is a mark of excellence and celebrates the highest
levels of achievement by companies operating in all sectors of the property and
real estate industry. These awards are judged by a highly experienced team of
professionals who cover the whole range of property disciplines. Xylem, the company’s Leed Gold Certified IT Park in Bengaluru was successful in winning an award for the Best Office Development in the Commercial category and Raisina Residency in Gurgaon built on the theme of Art and Culture, was successful in winning an award for Best Development Marketing in Residential category. On being successful at the Awards, Brotin Banerjee, Chief Executive Officer and Managing Director, TATA Housing said, "It gives me immense pleasure to receive these awards. The awards are a testimony to the high standards and expertise of TATA Housing to develop landmark projects in the country. This recognition will only make us endeavor to raise the bar and do better projects with every passing year. On behalf of the entire team at TATA Housing, I would like to thank the jury for this honor.” The International Property Awards are split into regions covering America , Asia Pacific, Europe & Africa, Arabia and UK and the participants enter at their relevant national level. Each region then have winners in prescribed categories under given parameters and the highest-scoring winners from each region are automatically entered into the overall International Awards, which ultimately determine the world's finest property companies.
13-POINT STRATEGY FOR LOW COST HOUSING Thesynergyonline Economic Bureau NEW
DELHI, MAY 01 : The Paper sent to Planning Commission, RBI and Finance Ministry also seeks relaxation in existing External Development Charges (EDCs), licence fee and government levies. EDCs levied on real estate developers average by over 50 per cent per annum. Inaddition, amounts coughed up by developers in form of licence fee for projects as well as government levies are mind boggling. These need to be rationalized to enable real estate developers make affordable housing at limits to about Rs.5 lakh and so. Developers and property agents should not be allowed to get away by duping end users and customers of their hardened money. Implementation should be regimented and control to ensure that action is taken on misleading advertisements for claiming assured returns and goofing gullible public, the primary objective of developers is to provide home,office spaces and shops for end-users and not indulge in speculations and over pricing as also unreasonably profiteering. A regulatory mechanism needs to be in place which will ultimately benefit real estate sector and genuine developers and protect customer interests, said ASSOCHAM president, Mr. Sajjan Jindal. High lending rates of banks is another areas of concern for developers. The sector is receiving step motherly treatment from the banking sector with project funding interest rates still hovering in the region of 14 per cent and above and credit availability being few and far between. This itself is a major cause of liquidity and cash crunch which this sector is undergoing at the moment. Add to that, the delays in providing housing finance to end users as well as growing tendency of the banks to reduce exposure on home loans to end users (customers who were earlier getting 90 per cent of the value of the house sanctioned as loan are now able to avail barely 65 per cent) is another cause of the liquidity problems which the sector is continuing to face. This needs to be rectified on an immediate basis to revive the sector. The Chamber has also suggested relaxation on Population density norms. Affordable housing is what the nation needs today & not not luxury housing for less than one percent of our population. It is indeed ironical that even 61 years after independence, our nation has been unable to provide the most basic of requirements of its citizens. The masses need a roof over their heads which they can call their own. The developers want to provide these to even among the lowest of strata but what is required is a pragmatic approach towards town planning. Population density norms in the country do not allow developers to build small houses of 300 / 400/ 500 sq ft in large numbers. This are the living spaces which the masses need & can afford. Our entire view on housing and town planning norms need to change. Infrastructure needs to be in place to provide these housing numbers on the ground. Once this is taken into consideration, smaller units will get a boost and builders automatically will be able to price their projects reasonably thereby promoting affordability. This will certainly help in reviving the realty market that has gone into recession due to excessive speculation. The moment houses would fall in affordable range automatically the financial crunch will get revived. Another point which the Chamber has highlighted include land availability for developers which should be at reasonable rates across the country under public private partnership model. This sector is receiving step motherly treatment from the banking sector with project funding interest rates still hovering in the region of 14% and above and credit availability being few and far between. This itself is a major cause of liquidity and cash crunch which this sector is undergoing at the moment. Add to that, the delays in providing housing finance to end users as well as growing tendency of the banks to reduce exposure on home loans to end users (customers who were earlier getting 90 per cent of the value of the house sanctioned as loan are now able to avail barely 65 per cent) is another cause of the liquidity problems which the sector is continuing to face. This needs to be rectified on an immediate basis to revive the sector. Other suggestions include income earned through LCH construction loan portfolio should be exempted from income-tax and builders building eco friendly houses need to be extended fiscal incentives like levying carbon tax on industries, which pollute and degrade environment. (editor@thesynergyonline.com) REAL ESTATE INVESTMENTS PICKING UP IN METROS Thesynergyonline Real Estate Bureau NEW
DELHI, APRIL 17 : However, metro rail projects accounted for maximum of 27 per cent share in total money injected in metro cities for infrastructure development purpose under central, state, local government including corporates. Sewerage and solid waste management investment in the Tier I cities constitute the major chunk of investments, specifically via government mode. Mumbai (Rs. 16694.672 crore), Chennai (Rs. 1588 crore) and Bangalore (Rs. 1354.92 crore) are the major recipients of sewerage related investment. In percentage terms, it works out to be 16.90 per cent of total infrastructure investment. In a statement, the ASSOCHAM President, Mr. Sajjan Jindal said that the Indian metros continue to be the favorite destination for real estate development. The real estate projects constituting residential as well as commercial projects, have pocketed investment worth Rs. 15,710.5 crore. The southern twin cities of Bangalore and Hyderabad have enjoyed maximum attention of the real estate developers. The Karnataka capital, Bangalore is the frontrunner in terms of real estate projects planned for the metros with the investment estimated to be Rs. 7990 crore. Hyderabad at second place among all the cities, has bagged projects worth Rs.. 4050 in realty space. With
India being placed as versatile tourist destination across the world and steep
rise in tourists arrival in India in past few years, Mr. Jindal said that as the Tier I cities in India are working out hard to offset the huge pressure on their existing infrastructure, it is the metro rail projects which have been the key driver of the infrastructure investment in these cities with metro projects costing Rs.34,000 crore. The Study is based on the ongoing projects of central and state governments and those announced by private sector in last Six months. Six metro cities taken in the study included Delhi, Mumbai, Kolkata, Chennai, Hyderabad and Bangalore. The key challenges faced in the metros include transportation and water supply. In transportation sector, other than metro rail, Rs. 6283 crore are being pooled in, accounting for 5 per cent share. Roadway projects in the Tier I cities which include bridges, ROBs, highways and expressways, have been allocated Rs. 5819 crore. Water Supply projects, primarily being undertaken by the central government under Jawaharlal Nehru National Urban Renewal Mission, have absorbed Rs. 5757 crore investment with 4.54 per cent share. Construction of metro rail is presently being carried on three Tier I cities including Bangalore (Rs. 6,395 crore), Delhi (Rs.8,118 crore) and Mumbai (R.19,525 crore) The Mumbai Metro Rail Project meant to improve the mass transit system has the horizon of 2006-2011 with the estimated cost of Rs.19, 525 crore. The work under Delhi Metro project is underway for the second phase for the investment of Rs. 8118 crore and is expected to be complete by the year 2010. Bangalore metro rail project was approved in April 2006 for the outlay of Rs. 6395 crore , the first phase of the project is expected to be completed by December 2011. The next city in radar is Mumbai with Rs.3125 investments planed by RNA Corporation (Rs. 2000 crore) and JAL Hotels (Rs. 1125 crore). The other considerable investments in hospitality sector were directed in Kolkata (Rs. 2985 crore) and Bangalore (Rs. 1125 crore). Interestingly, the private sector is still bullish on building Special economic zones despite the hurdles in land acquisitions and slowdown in world economy. Investments planned by the corporate sector for developing SEZs in metro cities account for 8.28 per cent of total infrastructure investments with the project costs exceeding Rs. 10,500 crore. . (editor@thesynergyonline.com) FORTUNE HOTELS OPENS FORTUNE INN GRAZIA HOTEL IN NOIDA Thesynergyonline Real Estate Bureau NEW
DELHI , APRIL 11 : The
Fortune Inn Grazia is located next to the commercial and shopping hub of Sector
18. With the Fortune Inn in Noida, the total number of Fortune Inn category hotels
in the country now stands at four with Jammu, Pune and Visakhapatnam hotels already
Targeted at businesses travelers, the hotel offers a choice of 42 well appointed rooms including 30 standard rooms and 12 Fortune Club Rooms, equipped with all modern amenities to ensure pleasant stay for travellers. Other offerings at Fortune Inn Grazia include a gym, spa, swimming pool and two restaurants, Earthern Oven and Fortune Deli for the perfect dining experience. It offers free Wi-Fi connectivity in the lobby, restaurant areas and also in the rooms. Dining experience at Fortune Inn Grazia Earthen Oven - The restaurant serves delicious North Indian cuisine straight out of the oven from mouth watering kebabs, spicy curries, tasty Indian breads to many more delectable dishes. Fortune Deli - The Deli gives you the perfect blend of a contemporary setting and great delicacies to relish with variety of fast food choices like sandwiches, pizza, chocolates, etc. Speaking on the occasion, Mr. Pawan Verma, Senior Executive Vice President, ITC -Hotels Division, said, "We currently have 26 operational Fortune Hotels in India and 52 alliances across the country and our Noida property is placed to strategically serve the NCR region. We will be expanding our presence in key markets with our different brands of Fortune Hotels in accordance to market demand. We are all set to launch our new properties in Mussoorie, Jaipur, Bangalore and Manipal in the next two months." Mr.Suresh Kumar, president, Fortune Hotels, said, "We are delighted to announce the launch of Fortune Inn Grazia in Noida and expect to bridge the existing gap with our excellent service and hospitality commitment. We will be able to redefine service standards available to the business travellers in this region. With a large number of corporate and other institutions based in the region we are sure of receiving good response for our hotel. Overall, the responses to all our properties have been excellent. We are looking forward to taking our services to other cities across India." "Fortune
Inn Grazia is an effort to reinvent the experience of hospitality for the corporate
segment and the new age travelers in this region," said Mr. Rahul Agarwal,
Director, Angel Baby Products Pvt. Ltd.."Our variety of services caters to
the evolving needs of the guests. We are committed to offer excellent services
at good value proposition to the business and leisure travelers. Also since our
hotel is centrally located we expect it to become an ideal place to host business
meetings and in-house conferences," PROPERTY PRICES CONTINUED TO DECLINE AND RENTALS STABILISED DURING OCTOBER -DEC'08 Thesynergyonline Infotech Bureau NEW
DELHI, APRIL 04 : "I expect the trend to continue for a few more quarters until prices bottom out and the market stabilizes on the interest rate front, which will make the market lucrative for the consumers to re-enter," said Vineet Singh, Business Head, 99acres.com The report compiles the asking rates (price demanded by the seller/builder/broker) of residential apartments (2-3BHK apartments) for buy/rent. It presents a trend of property prices and rentals across top cities: Delhi, Mumbai, Kolkata, Chennai, Bangalore, Hyderabad, Pune. Delhi - NCR Buy: Property prices in Delhi declined during Oct-Dec '08 as compared to the previous quarter (July-Sep '08). Dwarka witnessed a steep decline by 15%. Noida experienced a sharp drop of upto 20 per cent while Gurgaon witnessed a further decline in property prices by 7-8 per cent. Rent: Rentals in Delhi witnessed varying trends during Oct- Dec '08 as compared to the previous quarter, with some localities like Rohini, Vasundra Enclave, Lajpat Nagar witnessing an increase in rentals by about 20% while others such as Connaught Place, Vasant Kunj, Malviya Nagar and Janakpuri saw a steep decline of about 15%. Noida saw a decline by about 15 per cent in rentals, while Gurgaon was stable. Mumbai Buy: The Mumbai Realty market saw a decline in property prices during Oct-Dec '08 as compared to the previous quarter. Localities such as Bhayander (East), Vashi and Thane West saw a drop in property prices by 10 per cent The rental market in Mumbai shows a mixed trend. Rentals in Prabhadevi, Breach Candy saw an increase by over 50 per cent while rentals in Dahisar, Seawoods and Kharghar saw a decline by over 20% as compared to the previous quarter. Kolkata Buy : Property prices continued to decline in Kolkata during Oct-Dec'08 as compared to the previous quarter (July- Sep '08). Prices at EM Bypass declined by 17 per per cent while Rajarhat saw a decline in prices by 25%. Rent: Rentals stabilized during Oct- Dec '08 as compared to the previous quarter. However, some localities like Alipore and Jadhav Pur continued on an upward trend, witnessing an increase of over 20%. Chennai Buy: In Chennai, Oct-Dec '08 saw a steep decline in property prices in some localities as compared to the previous quarter. Perungudi and Valalsaravakkam saw a decline in prices by 15-20%. Rent: Rentals declined during Oct-Dec '08 as compared to the previous quarter. Localities ilke Kilpauk, T. Nagar and Medavakkam registered a steep drop of over 20%. Bangalore Buy: Bangalore was one of the first cities to get affected by the slowdown, where property prices declined steeply round the year. However Oct - Dec '08 saw a stability in property prices as compared to the previous quarter. Rent: Rentals in Bangalore slipped in Oct - Dec '08 with areas like Thipassandra, Maleshpalaya and Kaggadasapura witnessing a decline in rates of over 25 per cent. Hyderabad Buy: Severely affected by the slowdown, property prices in Hyderabad have declined steeply in Oct-Dec '08 as compared to the previous quarter. Property prices in Madhapur declined by 11 per cent while Miyapur saw a decline by 25 per cent Rent: Most of the localities in Hyderabad have seen a landslide in rentals in the period of Oct - Dec 2008 as compared to the previous quarter. Miyapur and Nizampet have seen a correction in rental prices by more than 20 pper cent, and some of the other popular places like Somajiguda and Madhapur saw a decline by over 30 per cent. Methodology With over 3 lakh live listings, 99acres 'Insite' is an initiative to provide users and stakeholders of 99acres.com with useful insights about the property market in India. 99acres 'Insite' - Metro Property Price Trends addresses the single most important concern of all be it buyers, sellers, investors or media- 'Price trends'. The report compiles city wise, locality wise price graphs of residential apartments and rentals of 2-3 BHK Apartments only. The team at 99acres.com has adopted the methodology which ensured that spam listings do not skew the numbers that are present in this report.
Since, the figures quoted are asking prices (price demanded by the buyers/ brokers)
and not actual transaction prices, it was important to identify entries which
were spurious and eliminate them from the data set. Sample sizes have been carefully
chosen to ensure significant number of data points, only properties with high
number of user views have been selected for the analysis and outliners have been
identified and treated.(editor@thesynergyonline.com)
SAHARA PRIME CITY TO DEVELOP TELE- MEDICINE NETWORK COVERING 220 HOSPITALS Thesynergyonline Real Estate Bureau NEW
DELHI, MARCH 27 : The 554- bedded multidisciplinary super-speciality tertiary care Sahara Hospital, Lucknow, which offers 52 specialities, shall be the central hub for these Hospitals. All the 220 hospitals will have a capability of multiple concurrent tele-medicine sessions complimented by Tele-consultation to enable doctors at different centers to share expert opinions and advice on any patient at any of these hospitals. These
hospitals will be equipped with hi-tech IT facilities for transferring patient's
data, Medical Records, Audible Signs of patients and Diagnostic Images and Videos,
both live and stored across all 219 hospitals with support from Sahara Hospital,
Lucknow. Sahara Hospitals adopts the international conventions of telemedicine. All the OPD consultation rooms at Sahara Hospital, Lucknow will be upgraded to tele-consultation rooms and this way there would be multiple concurrent tele-consultation sessions possible for different specialties from a single hospital, at a single point of time. These
OPD consultation rooms will have redundant network available for up to 1000 Mbps
connectivity and will have options to install High Definition LCD for voice and
video session along with 17 inch TFT monitor for viewing patient data online.
Doctor sitting at the OPD consultation room can view the data of any patient available
across any of the 217 Sahara City Homes Hospitals on a single click of button
and give him real time Tele-consultation. All
critical parameters of patients admitted at these 217 hospitals can be viewed
'Live' with the help of integrating bed-side monitors to the Tele-Medicine Server
located at Sahara City Homes and the same will be linked on a dedicated lease
circuit to Sahara Hospital, Lucknow. To avoid any link failure as well as server
failure, reasonable level of redundancy will be provided in the system. Besides
this, a separate level of back-up servers will be placed at a different location
to ensure that there is no loss of data. For
the first time in India, integrated tele-medicine system to transmit patient's
Medical records from HIS (Hospital Information System), Radiological Images from
PACS (Picture Archival and Communication System) and voice and videos simultaneously
will be functional across all the 220 hospitals. The
30- bedded multi-specialty secondary care hospital across each 217 Sahara City
Homes Township will have strong infrastructure and round-the-clock medicine facility
center with all the specialties of Secondary Care level. These hospitals will
provide major specialties like Gastroenterology, Cardiology, General Medicine,
Obstetrics & Gynaecology, General Surgery, Neonatology, Paediatrics, Physiotherapy,
Orthopaedics, ENT, Dentistry and Ophthalmology. These
hospitals will offer advanced diagnostic facilities like Digital X-ray, Ultrasound,
2D Echo (Color Doppler), TMT, Video Endoscope, ECG, Nasal Endoscope and Colposcope
through latest generation medical equipments. A full-fledged Pathology Lab with
support from Sahara Hospital, Lucknow and 24 hrs. Pharmacy located at the ground
floor for easy access from outside and inside the hospital will also be a part
of these 217 hospitals. Each hospital will consist of two OTs (a major and a minor) with dedicated ancillary spaces. For best possible Critical Care as per the international protocols, a 4 bed well-equipped ICU unit is planned with life saving high end equipments like Ventilator, Bed side monitors, etc. In addition, one isolation Critical Care will also be provided. Specialized Mother & Child Care facility will provide maternity services in elegant and warm atmosphere supported by Neonatal Intensive Care Unit & Immunization Facilities. Centrally air-conditioned general wards with spacious private and semi private wards with attached convenience facilities and special area dedicated for Health promotion and preventive health care with provision of special check-up packages, consultation and counseling will also be provided. Mr.
Sushanto Roy, Head- Infrastructure & Housing, Sahara Prime City said,
"The hospitals at Sahara City Homes Townships are conceptualized to be patient
friendly and aim to provide medical facilities of highest standards. The Integration
of latest IT & Medical Technologies will contribute to achieve the highest
standards of Medical Care and Research in the network of 220 Sahara Hospitals
The Sahara City Homes Hospitals are designed by world renowned architect Mr. Hafeez Contractor, who has also designed the recently inaugurated 554 bedded multi-disciplinary super-speciality tertiary Care Sahara Hospital at Lucknow. The secondary care hospitals will have spacious bed lifts for swift and comfortable transportation of patients, Central Sterilization and Supply Department (CSSD) supported by latest generation automated equipments, Central Medical gases and vacuum, Exclusive
Service lift connecting all floors for easy service, big open air cafeteria and
laundry, Housekeeping and all other ancillary spaces. COMPREHENSIVE REFORMS MEEDED IN REAL ESTATE , HOUSING SECTOR : CII Thesynergyonline Real Estate Bureau NEW
DELHI, MARCH 01 : With strong backward and forward linkages with more than 250 industry sectors including cement, steel, brick, timber, building material, etc., the Real Estate and Housing sector has played a catalyst role in India’s growth story. This sector has been operating under unfavourable policy and taxation environment, which has resulted in it’s growth potential not being fully realised. Seeking a new and proactive approach for growth of this sector, the CII report has stressed that “Industry Status” to “Real Estate & Housing” should be the cornerstone of the new policy. “Industry Status” would bring about a major transformation in terms of outlook of the Industry. It would stimulate investments and inculcate corporate culture and industry discipline, which will immensely benefit both economy, in general and consumers in particular. The “Industry status” will also help the sector access bank lending at a competitive interest rate at low collateral values as against high risk rates prevailing at present. One of the reasons of high cost of real estate and housing in India is the cost of finance. A major part of the housing loans constitutes loans to individuals in the higher income group. Only 5-7% of the loans disbursed by the housing finance companies reach to builders / developers. In the absence of loans available from financial institutions, most of the developers access funds from private sources of finance at high interest rates, which ultimately leads to higher real estate prices. CII in it’s report has also sought “infrastructure Status” for “Integrated Township Development’, which is almost akin to development of SEZs with complete set of infrastructure facilities. Several real estate developers are engaged in undertaking large scale urban development projects including purchasing raw land and developing it for the purpose of construction of houses, multi-storey buildings, creation of infrastructure and social facilities. Real estate developers would need incentives for creating such an infrastructure in the country, it added. Expressing
concern over the growing shortage of houses, which is expected to cross 26.5 million
dwelling units by 2011, CII report cited availability and cost of land as the
single most crucial factor affecting the cost of housing in India. It strongly
recommended structural reforms such as increase in the municipal limits of the
existing cities with a time bound plan to build infrastructure, simplification
of process of conversion of land from agriculture to residential / commercial,
relaxation of Floor Area Ratio
Thesynergyonline Realty Bureau BHUBNESHWAR
, FEB 08 :
After expanding footprints in Ludhiana with the launch of Vipul World recently, Vipul Gardens is set to bring a paradigm shift to real estate in State of Orissa. Sprawled over an area of approx.10 acres, the project is first high-rise in the city offering ground+14 floors. This state of the art integrated residential complex will have 578 units with choice of living of 2 BD, 3BD and 4BD apartments.
"The development witnessed among the services and manufacturing sector in the region has created a demand for housing in the middle and high-income group. Vipul Gardens is aimed at meeting this demand and build a unique foundation for the real estate sector to provide world class amenities and facilities to the residents." commented Mr Punit Beriwala, Managing Director, Vipul Ltd.
The project has many features that make it distinct from other projects. These are the first high-rise apartments in the city offering many facilities under one roof. The integrated project offers to its residents - a Club with Gym, Steam, Jacuzzi, Swimming Pool and a Multi- Function Hall.
The project is also a gated community that provides a safe environment to its residents. This is supported by an in-house 24x7 Security provided at the project. The tiny tots have the advantage of dedicated kids play zone and there is ample surface and basement parking.
Speaking on the foray into East India, Mr Beriwala said, "Bhubaneswar is a flourishing city and has a prevalent infrastructure. Availability of economical land and labour is an advantage. Above all, the city has a good demand potential for real estate. The city still has unexplored regions that have made it to qualify on the radar of our expansion plans. We are pleased to bring to the city our known quality and world-class amenities."
Each of the condominiums in Vipul Gardens is designed in a manner that it overlooks lush green landscaped lawns. Extensive open area and playgrounds are provided for tiny tots to play and live closer to nature.
The
company has presence in Gurgaon, Manesar, Dharuhera, Mohali, Ludhiana, Hyderabad,
Nagpur, Siliguri and Kolkata. With a realisation value of approximately Rs. 200
crore, the project is expected to complete in the next three to four years. 'SHIELA OPENS NEW METRO LINE FROM VISHWAVIDYALAYA-AZADPUR TO JEHANGIRPURI Thesynergyonline Economic Bureau NEW
DELHI, FEB 05 :
Speaking on the occasion, Mr. Pradeep Jain, Chairman, Parsvnath Developers said, “We are very proud to be associated with DMRC in these prestigious infrastructure ventures in the capital city. It is my belief that Parsvnath would live up to the expectations in delivering quality within stipulated timeframe in all future ventures. We look forward to be a part of DMRC to construct malls and station boxes as it expands its routes.”
PDL
has also developed a Metro Mall at the Azadpur Metro station. The developed Shopping
Mall located on a busy route will have an enormous footfall and would ensure a
smooth shopping experience for its metro travelers. Recently, Parsvnath also bagged
contracts from DMRC for construction of important Dhaula Kuan Metro Station and
Common Wealth Village Site Metro Station. Parsvnath Developers Ltd. is also developing
13 Metro Malls out of which it has already completed 7 Metro Malls. Thesynergyonline Real Estate Bureau NEW
DELHI, FEB 05 : Stating this at ASSOCHAM organized Conference on `Affordable Housing for All’ here , Ms Kumari Selja also informed that another stimulus package for real estate would be in terms of input costs getting cheaper and cost of money falling even at lower slabs compare to what RBI has already announced. In the meanwhile, she added that the Cabinet Committee on Economic Affairs has approved 5% interest subsidy scheme on loans taken by economically weaker section and lower income groups for constructing their Pucca house or for acquiring a house for themselves. ”This subsidy of 5 per cent per annum shall be available to loans upto Rs.1 lakh and reduce interest rates to around 3.5% per annum. Under the scheme, interest subsidy of Rs.1100 crores will be provided to the beneficiary in the next 4 years and is expected to help in the construction of 3.10 lakh houses”, said the Minister. Referring to Model Real Estate Regulation Bill, Kumari Selja said that this Bill was being drafted at the behest of Prime Minister, Dr. Manmohan Singh who has approved of the request of the Ministry so that a model is put before all states and UTs to change their existing housing guidelines to ensure affordable housing. She
said that earlier the focus of the government was shelter for all, now it is changed
and the emphasis has gone on affordable housing and thus the Bill is being enacted
which will work as a role model for all states and UTs to accordingly make their
land allocation policies as per which at least zero pricing of land is ensured
for weaker and lower “Affordable housing cannot be possible for this for the section of society until a new regulatory system is put in place as land prices have gone exponentially higher which the poor man cannot afford”, said Kumari Selja. She also said that projects for construction of 1.3 million houses had already been sanctioned and Rs.23000 crore has already been kept for housing building and provision of basic municipal amenities to the urban poor but since requirements are huge, despite construction of around 2 million houses under Jawaharlal Nehru National Urban Renewal Mission in 11th Plan, still a huge housing shortage will exists and called upon the private sector to come forward to construct housing for poorer section of society under the Mission. Speaking on the occasion, Joint Secretary (Housing), Ministry of Housing & Urban Poverty Alleviation, Mr. S K Singh said that the government would start executing the 5 per cent subsidy scheme approved by the Cabinet Committee on Economic Affairs in next 7 days. He said that centre has already agreed to release Rs.18,000 crore to build affordable houses for weaker sections of society and remaining Rs.18,000 crore would be pooled in from various states. With this amount, only 6 lakh houses can be constructed against the need of 24.7 million dwelling units. Mr. Singh said that for this, the private sector should come forward and construct dwelling units. Among others who spoke on the occasion stressing the need for affordability housing for all sections of society included Mr. S. Sridhar, CMD, National Housing Bank, Mr. Rohtas Goel, Chairman & Mg. Director, Omaxe Ltd., Mr. V K Sood, Managing Director, PNB Housing Finance, Mr. Navin M Raheja, Managing Director, Raheja Developers and Mr. D S Rawat, ASSOCHAM Secretary General. ( editor@thesynergyonline.com) JAIPRAKASH ASSOCIATES Q3 PAT UP 6% AT 165.51 CRORE ; 9 MONTH PAT UP 24% AT RS 496 CRORE Thesynergyonline Coporate Bureau NEW
DELHI, JAN 19 : The company's EBIDTA for 9MFY09 improved to Rs 1176.22 crore , an increase of 27.57 per cent as compared to Rs 922.01 crore in the corresponding previous period. Net profit for the 9MFY09 was at Rs 495.90 crore as against Rs 399.26 crore in 9MFY08. The earnings per share (EPS) for 9MFY09 stood at Rs 4.22 per share.
The company's all operating subsidiaries with its robust performance has made it a unique organization, whereby bucking the general trend total income for the Q3FY09 registered a growth of 44.49 per cent and stood at Rs 1447.12 crore. EBIDTA for Q3FY09 was at Rs 372.69 crore. The share of revenue from cement division (including cement products) during the quarter constituted 40 per cent of the revenue while engineering division (including real estate andothers) during the quarter constituted 57 per cent of the revenue.
The company registered net profit of Rs 165.51 crore for the quarter ended December 31, 2008 , registering growth of 6 per cent over the corresponding quarter of the previous year. The operating margins for Q3FY09 stood at 22.19 per cent.
Commenting on the company's performance for 9M & Q3 FY09, Mr. Manoj Gaur, Executive Chairman, Jaiprakash Associates , said, "Even in a challenging macro environment, we are delighted to report an operationally strong financial growth in the third quarter and for the nine months ended December 31, 2008. Emphasis on effective execution and timely delivery of projects without compromising on quality has helped us achieve excellence across all business segments in which JAL operates."
"Jaypee Group's Real Estate foray is unique in the country as the same is an integral part of a large infrastructure project and is invariably located along the express way connecting Noida to Agra thereby providing competitive edge with respect to the cost as well as the valuation which go hand in hand with the prospects of any real estate project. As for the third quarter & nine months of current fiscal, the real estate division contributed 62 per cent out of the total revenues, " he added. "In fact, our recently launched property – Wish town Klassic, received an overwhelming response from customers in the first month of launch itself. The fact that out of total bookings done by all real estate developers combined together in last month were less then the bookings received by Wish town Klassic reiterates the faith and confidence that customers have shown in the execution capabilities of Jaypee Greens," Mr. Gaur further added.
The company has approved merger of four of its subsidiaries - Jaypee Hotels (JHL), Jaypee Cements (JCL), Gujarat Anjan Cement (GACL) and Jaiprakash Enterprises (JEL) with the public listed flagship company Jaiprakash Associates Ltd. The merger will encompass the synergy in four of the subsidiaries and JAL. Merger is slated to be effective from April 1 2008, after approval from High Court.
Commenting on the amalgamation, Mr. Gaur said, "Two of the merged companies that is Gujarat Anjan Cement Limited (GACL) is implementing more than 5MTPA of cement capacity in Gujarat and has a vast potential for future growth, while Jaypee Cement Limited (JCL) is implementing a 4MTPA cement project in AP based on the mining lease available. Amalgamation of these companies in JAL would mean JAL becoming a PAN India cement player bringing operational flexibilities and economies of scale".
"The company already has two properties being managed by Jaypee Hotels Limited (JHL) and JAL owns 72 per cent of Jaypee Hotels. While Jaiprakash Enterprises Limited (JEL) also in the E&C business possesses lime stone mines and industrial complex in UP hence such amalgamation which involves cash less transaction is tax efficient and serving to reach the objective of creating higher economic value for all stakeholders which has been JAL's constant endeavour", added Mr. Gaur. All the sectors of the company are on track to register robust growth and work is progressing in the right direction with momentum. The company's 2MTPA Jaypee Sidhi Cement Project (JSCP) in M.P. kiln was lighted up on the auspicious occasion of Makar Sakranti day precursor to clinker production. Another new clinker line of UP Cement project (UPCP) at Dalla is expected to go into production in February 09. With this new capacity in excess of 6 MTPA at Sidhi (MP), UP and Gujarat slated for commissioning by the end of the current fiscal, the group shall have in excess of 18 MTPA of cement capacity in operation. The construction work on entire 165 km of the Yamuna Expressway project is in progress and the project is scheduled to be completed by 2010. The power business of the company is also progressing well and both, 300 MW Baspa - II and 400 MW Vishnuprayag are generating energy in excess of their design energy. Work on the group's 1000 MW Karcham-Wangtoo project is progressing on fast track basis with the project slated for commissioning six months ahead of schedule. The company's series III foreign currency convertible bonds (FCCBs) issued in 2007 are due for conversation . (editor@thesynergyonline.com) REAL ESTATE 2009 : BOOMTIME AGAIN! Pradeep Jain, Chairman, Parsvnath Developers & president - CREDAI NCR NEW
DELHI, JAN 02 : In
2005-2006, the surge was because of income tax exemption upto to Rs 1.50 lakh
on interest paid on housing loans, tax exemptions to developers who produced residential
units upto a certain size, provision for repeal of Urban Land Ceiling Act, etc,
were some of the important incentives. Extremely attractive interest rates and easy availability of funds for acquisition of residential units provided additional impetus for an exponential growth. As the demand for real estate continues unabated, with a view to cool off the market, the Union Government/ RBI, intervened through certain monetary and fiscal measures such as withdrawal of the tax exemptions granted earlier, raising of interest rates, etc. This resulted in a peculiar situation. While, on one hand, there existed a demand due to unprecedented number of jobs generated by continued growth of knowledge industries and, on the other hand, the demand could not be translated into deals, mainly due to enhanced interest rates on housing loans. The real estate sector, therefore, entered a phase of sluggishness. Deals concluded were not commensurate with the actual latent demand. Large section of the prospective purchasers preferred to wait and the situation continued till September 2008. Since October 2008, the world witnessed the collapse of American financial system, preceded by the sub-prime crisis. The latent or the built-up demand found another reason not to surface sufficiently while the investors demand remained low in Real Estate; almost every segment of the Indian economy entered a slow down mode. At this point of time, the Government did intervened with encouraging measures to boost real estate demand, since it is considered to be the backbone of Indian Economy and is the growth engine supporting around 240 industries. It is the largest employment generator for below the poverty line. Starting November 2008, the Government has been taking a slew of proactive measures to boost demand for real estate with the RBI's monetary easing is beginning to take effect with banks dropping lending rates by 50 - 150 basis points for various segments. It also includes concessional interest rates for loans upto Rs 20 lakh, pumping in Rs 3,00,000 crore to the Banking system over a few weeks, to ease liquidity, reduction in risk weightage for housing loans, refinance by National Housing Bank at low interest rates and many more such measures. Banks also announced softer interest rates for loans not only below Rs 20 lakh, but for loans above Rs 20 lakh also. This will not only prompt the developers to consider more construction of mid segment and affordable houses. Apart from this, tier II and tier III cities are also promising good potential options for accelerated growth of real estate in these fast emerging cities. The proactive intervention by government is a major differentiator this time and this is bound to play a crucial role in the revival of the economy. The
interest rate cut should prompt those, who were delaying decisions for sometime,
now to wrap up deals for their dream Besides, hiring numbers for banks, insurance and some other sectors are likely to go up drastically. Job creation due to these factors should generate fresh demand for housing. I also presume that the American turmoil has the potential to bring more business to Indian IT companies due to mergers and acquisitions back in the USA, and also due to an urgent requirement for American companies to cut costs in times like this. Experts also predict that the revival of Indian economy will happen faster and sooner than anticipated, primarily due to Government interventions, unlike in the past, and that, when the revival happens, it can create jobs much faster than in the past. It would not be much if I would say that by mid of calendar year 2009 we may witness spurt in real estate sector again. All these should bring buoyancy to real estate and to the Indian economy, post 2008. While
at the time when we are looking forward to 2009 as the year of resurgence for
Indian real estate sector, we would also seek the support of government in providing
Industry status to Real Estate Sector as it is the largest employment generator
after agriculture in the country and a single component within the industry -
housing - contributes roughly 5 per cent of India's The sector is therefore strategic to India's economic progress. Consequently, the sector requires further impetus for continued growth. As for the Individual perspective, the cap on the rebate is relatively low and needs to be commensurate with the level of existing expenditure to acquire real estate. On the cost side, stamp duty, which presently ranges between 6-16 per cent (depending on the state in which the property is located), needs some attention. In this respect, there appears to be a need for a credit mechanism since there is a cascading effect of stamp duty right from purchase of land by the developer to sale of the property to the final buyer. A possible solution could be an input credit system (similar to service tax) for stamp duty paid on land against the output stamp duty on sale of property. These measures will not only have the dual benefit of increasing the supply of housing for the mass segment (thereby making it more affordable) but also will provide a fillip to the real estate sector on the demand side as well. Secondly, I look forward for Providing Infrastructure Status for Housing as mass housing involves integrated infrastructure development. Bigger township projects have long gestation period needing investment for a longer period of time like infrastructure. We are engaged in undertaking large scale urban development projects including purchasing raw land and developing it for the purpose of construction of houses, multi-storied buildings, creation of infrastructure and social facilities such as laying of roads, systems for water supply, water treatment, sanitation and sewerage, solid waste treatment and also to create educational, medical and recreational facilities as an integral part of development of satellite townships, in accordance with the elaborate rules and regulations and with the specific approval from the State Governments. Integrated township development is almost akin to development of SEZs with complete set of infrastructure facilities. "An integrated township and group housing development on area more then 10 acres involving provision of residential, educational, medical, community, commercial or institutional buildings and creation of required facilities including roads, water supply, water treatment, sanitation and sewerage systems and solid waste treatment and management systems". Real estate developers need to be given incentives for creating such an infrastructure in the country. Hence, integrated township development should be accorded infrastructure status. I am confident that with Reviving Concession u/s 80IB (10) to trigger affordable or low cost housing whereby income tax deduction u/s 80IB (10) was available to developers for making houses affordable to weaker sections of the population. This facility was discontinued from 01st April 2008.
This concession was highly successful in triggering affordable housing but since
State laws were not permitting higher densities, the benefit of it could not be
realised to fullest possible extent. Now, almost all State Govts. have relaxed
their density norms. Therefore, if concession u/s 80IB(10) is revived now, it
will give boost to affordable housing and help in reducing NEW HOME LOANS PACKAGE HIGHLY INADEQUATE : ASSOCHAM NEW
DELHI, DEC 16 : This move, according to ASSOCHAM will create required growth momentum in real estate, construction, cement, steel, electrical and heavy engineering which is the need of hour. Mr. Jindal further pointed out that making available home loans upto Rs.5 lakhs at 8.5 per cent and between Rs.5 lakh-Rs.20 lakh, charging interests at 9.25 per cent would not make any sense as properties are hardly available at this cost not even in Tier II and tier III cities, why to talk of metros and large townships. Therefore, the government should make housing loans at suggested 6 per cent as well as 8.5 per cent interest rates, if it is really serious to create demand in real estate, construction, cement, steel etc., said Mr. Jindal. (editor@thesynergyonline.com) FISCAL STIMULUS PACKAGE TO BOOST AFFORDABLE HOUSING Thesynergyonline Real Estate Bureau NEW
DELHI, DEC 16 : On the other hand, ‘housing for all’ remain a key priority in India’s development agenda. Low-cost housing offers a ‘world of opportunities’ to the real estate development business that could bring in much needed resilience to this sector,according to Asáni Consulting . The much anticipated ‘fiscal stimulus package’ was announced by the government on December 7, 2008; a day after the Reserve Bank of India (RBI) cut repo rate by 100 basis points. The package worth Rs 37,000 crore came as a huge relief to the industry and provides much needed resource to firefight the recession in the economy. In addition to this, government hopes to expedite infrastructure projects worth Rs 100,000 crore through faster clearances of public private partnership (PPP) projects, and ensure their easier financing through tax breaks on fund raising by the India Infrastructure Finance Company (IIFC). PSU banks will shortly announce a package for borrowers for home loans in two categories; for loans of up to Rs 5 lakhs and Rs 5-20 lakhs, implying cheaper credit for buyers from low and middle-class segments. Restructuring of loans from the PSU banks were allowed, which was earlier restricted. CENVAT duty reduced by 4 per cent across the board (i.e. for all categories: 14, 12 and 8 per cent). This would cost the government in terms of forgone revenue of Rs 8700 crore. This also would benefit the ancillary and input industries for the real estate sector. In a nutshell, many restrictions imposed on this sector that led to escalation of costs were eased. That affordable or low-cost housing in the Indian context could stimulate the flagging demand in the Indian real estate sector has been a topic of discussion among industry and government circles for quite some time now. Interestingly, a de facto working definition of affordable housing was spelt out in the package. This definition, hitherto missing, would pave the way towards a constructive debate on affordable housing in the country. Consequently, a consensus to adopt a time-bound, effective action-plan to housing for the mass would be easier to reach at. ‘Shelter’ is a pre-requisite for a strong social infrastructure, and even the colossal sum of US$ 500 billion planned investments over the Eleventh Plan on India’s hard infrastructure cannot complement deficiencies in the corresponding soft infrastructure sector. Recently, the Maharashtra Housing and Area Development Authority (MHADA) had declared 600 low-priced apartments for sale in Mumbai. These apartments were priced at around $50 a sq. ft., roughly four times that of the prevailing market rates. MHADA received around 200,000 applications for these 600 hundred apartments that were to be allotted on the basis of lottery. In Delhi too, the Delhi Development Authority (DDA) has received 850,000 applications for 5,010 low-cost apartments. Clearly, the demand for low-cost housing is very strong in India. Potential demand for low-cost housing in India is estimated to be over 24 million dwelling units at present. According to a Planning Commission Report, urban housing shortage in the country is expected to increase to 26.5 million by 2012. Consequently, this segment is likely to throw up a huge investment opportunity. An estimated US$ 25 billion investment would be required over the next five years in urban housing according to a Merrill Lynch report, suggesting a substantial scope of demand for housing. Appropriate policies can translate this latent demand to an actual one thereby setting in a multiplier effect in the economy. Close to 80 per cent of the real estate development in India takes place in the residential segment. This reflects that demand for housing is a compelling one in the Indian market. In spite of declining average age of borrowers, which has come down to 35 years from 40 years, a vast untapped potential still remain in the home loan market. Housing finance companies attribute the surge in demand for home loans to tax breaks, which brought down effective cost of loans to a moderate 6%. However, it took 30 years for mortgage penetration to expand from 2.5 per cent to 6 per cent of GDP. In comparison to this, US mortgage loans comprise 66% of their GDP, indicating a plenty of room for growth of demand for loans in India. An innovative financial system addressing the issue of latent demand could actually spur actual demand for housing. Affordable housing was not a major part of the Indian real estate sector boom. However, affordable housing has recently attracted attention from developers and PE investors. The raison d'être for channelling investment in this asset class is mainly due to an early mover advantage, volume-driven profitability, priority-sector status accorded by government and subsidized land costs, among other drivers. Already many real estate development companies have moved into affordable housing construction. Puravankara has set up a wholly-owned subsidiary- ‘Provident Housing and Infrastructure’ which will build 64,500 houses in southern part of the country over the next five years. Omaxe has 100 per cent owned ‘National Affordable Housing and Infrastructure’, which plans to invest $20 billion over the next five years in building one million such homes. Many other developers are queuing up to foray into the low-cost housing construction business. The rush is partly explained by the response to government-led housing programs. Various proposals aiming to lift the purchasing power of homebuyers have been forwarded. ‘Interest subsidy scheme’ and ‘mortgage guarantee scheme’ are discussed as ways that can reduce risks for banks and provide credit to low-cost homebuyers. ‘Refinance scheme’ for banks to finance builders and real estate developers have also been suggested. This would support developers undertaking housing projects having dwelling units with carpet area of about 400 sq. ft — primarily a one-bedroom house of about 525-550 sq. ft. Refinancing schemes could also be extended to slum development projects. Besides rigid land laws raising avoidable transaction costs, developers face increasing costs as land prices on an average shot up by almost four-fold over last three year. Incentives like reduced land price, relaxation of restrictions on the height of construction would immensely promote low-cost housing projects. Taller buildings raise the measure of building density known as Floor Space Index (FSI). Some states are pursuing a policy of mandatory allocation of land by the developers for economically weaker sections and low-income group. The public-private-partnership (PPP) model that has so far been able to work well for many infrastructure development projects could be tried out in the real estate sector also for affordable housing projects. (editor@thesynergyonline.com) NAREDCO HAILS ECONOMY STIMULUS PACKAGE Thesynergyonline Real Estate Bureau NEW
DELHI, DEC 08 : "Although the government has not announced any immediate relief to the housing sector, we however welcome the steps taken to provide the right push to the economy as a whole. The move to make funds available for various infrastructure projects is a step in the right direction since it will stimulate demand in the core sectors. This clubbed will the cut in Repo and Reverse Repo rate announced yesterday will help the economy by providing the right impetus by making funds available easier and relatively lower cost",*Mr Rohtas Goel, President, NAREDCO said in a statement . The steps taken by the government over the last two days will go a long way in stimulating demand in the economy giving it the much required impetus. The move is aimed at creating favorable ground for both buyers and sellers who have been shying away from the market in the last few months. We look forward to the banks to take a favorable view of this and announce a favorable scheme for the housing sector soon, " he added. NAREDCO had recently advised its members to review the prices of their residential projects. Concerned over the decline in bookings in the realty sector, NAREDCO had proposed this move which was aimed to boost sales of the projects and bring some relief for the buyers who were shying away from investing in real estate. The
apex industry body has been the voice of real estate sector in the recent past
for many issues affecting the sector. (editor@thesynergyonline.com) DWELLING UNITS DEMAND FELL BY 35% IN TIER II, III CITIES BETWEEN APRIL-OCT. `08 Thesynergyonline Real Estate Bureau NEW
DELHI, DECEMBER 01: The
assessment has been arrived at the Chamber in its latest exercise about as to
what has been happening in purchase of properties in Tier II and Tier III cities
in first 7 months of current fiscal in which the properties purchases had registered
a growth of over 25% between April-October in the last year. The
Chamber's assessment reveals that over 2 crore people in about 25 Tier II and
Tier III cities are the claimant for buying of dwelling units who are unable to
make purchases as higher borrowing cost have compelled most of real estate developers
to defer their projects. The
analysis of the Chamber is based from the feedback that it received from its well
known affiliates real estate members that are developing real estate projects
in number of tier II and tier III cities which include Meerut, Bulandsahahr, Muradabad,
Bhiwadi, Dehradun, Rudarpur, Chandigarh, Sonepat, Panipat, Manesar, Pune, Nasik,
Bhopal, Indore and many other such cities and towns in Southern and other parts
of the country. The developers who gave the feedback to ASSOCHAM include Parsavnath,
Omaxe, DLF, Unitech, BPTP etc. The
assessment further reveals that not only the cost factor has compelled, the promoters
of properties makers to indefinitely defer their real estate projects but non-availability
of inputs such as briks, cement, steel and availability of quality power and delays
in obtaining water connections etc. have caused inordinate delays for developers
to stick to their schedules as promised in their pre-launch campaigns. The
Chamber, therefore has mooted
a proposal to the government to introduce Real Estate Investment Trusts (REITs)
to bring the much needed class of institutional investors to strongly support
transparency and reign the discipline of domestic commercial real estate market,
The Chamber holds that REITs can also help develop Commercial Mortgage Backed
Securities (CMBS) market and create a source of cheaper debt for commercial real
estate. It
further holds that since purchase and sale of real estate assets would form part
of the activity of REITs, the presence of a large number of REITs can enhance
liquidity in the secondary market for commercial real estate. The increase in
liquidity would make the sale of assets - if necessitated in CMBS structure easier,
thereby improving the attractiveness of CMBS. The Chamber has further pointed out that principal repayments to CMBS investors are made through refinance or sale of property; hence the enhanced liquidity in commercial real estate will make CMBS more viable, in terms of availability of refinance and quicker sale of property. However, in the case of CMBS originated by a REIT, the REIT would own the property. As
a financial investor, the REIT would be more inclined to let the CMBS trust enforce
the mortgage and sell the property. The REIT's franchise with its unit holdrs
would improve if cuts its losses from a property that did not provide adequate
returns. CRISIL expects the legal risks associated with taking possession of and
selling mortgaged properties to reduce considerably in the case of properties
owned by REITs. REITs
typically own a variety of real estate properties, often even across geographies.
They thus offer a pool of well-diversified properties of CMBS. This, results in
a better spread of risks as compared to a regional developer who offers mortgages
on a few similar properties often located in the same market space. Diversification
will rescue the investors' overall market. This will therefore improve the investment
characteristics of CMBS and provide REITs with easier access to lower-cost debt
funds. (editor@thesynergyonline.com) RETAIL RENTS GROW IN GLOBAL STRATEGIC DESTINATIONS Thesynergyonline Real Estate Bureau NEW
DELHI, NOV 22 : Despite
deteriorating economic conditions, the retail sector has to date continued to
perform relatively well. Half of the markets surveyed saw retail rental growth
in the past
year (ending Q3 2008), with 65 per cent of those seeing increases over the last
six months. New York’s 5th Avenue remains the world’s most expensive
retail destination, with rental values reaching €16,817/sqm/annum, more than
75 per cent higher than Hong Kong, the second most expensive location. Also making
the top five most expensive retail destinations globally are Moscow, London and
Tokyo. Speaking about the retail sector in India, Anshuman Magazine, Chairman & Managing Director, CB Richard Ellis said; “The Indian retail sector has seen a slight correction in rentals in key cities, primarily due to prevailing market conditions. From being the 27th most expensive retail destination we have dropped to the 31st spot. The
growth of the sector too, has seen a slowdown keeping in sync with the global
economic conditions. However India continues to be a preferred location for international
brands and will continue to attract retailers.” The
demand is coming from retailers that are performing well in the current market
– such as luxury brands – but also from retailers who are reining in
wider expansion plans in response to weakening consumer spending and focusing
on longer-term strategic locations as opposed to new destinations. Although
rents have risen in many key cities, the slowdown in consumer demand has inevitably
struck some retail markets around the world resulting in falling rents. In cities
such as Tokyo and CBRE’s research ranks 88 global retail markets across EMEA
(Europe, Middle East and Africa), Asia Pacific and the Americas in terms of rental
values for stores in prime retail destinations, identifying the most expensive
and fastest growing markets. Ray
Torto, Chief Global Economist, CBRE, said: “It is easy to assume that falling
consumer confidence and financial market turmoil across the globe are striking
all retail stores, but the CBRE survey together with sale figures from retailers
is showing that we have a barbell market. The
analysis indicates that the upper end is holding up well and the same is true
for lower-end,non-discretionary retailers. ” Fifteen
of the top 25 fastest-growing retail destinations sit in EMEA, with Tel Aviv,
Oporto, Abu Dhabi, Valencia and Lyon topping the global list. Peter Gold, Head
of Cross-Border Retail in the EMEA region for CBRE, said: “Although growth
rates are slowing in response to deteriorating economic conditions, demand for
retail space at the prime end of the market, particularly in fashion hot spots
like New York and London, continues to propel rental growth in many cities. Many
retailers are opting for ‘prime pitch’ space “Changing economic conditions are also impacting the types of retailers driving demand. Many private retailers still have cash to fuel their expansion plans; luxury and value-led brands have announced positive sales growth and are maintaining strategic expansion; and many retailers are jumping on opportunities to fill new gaps in the shifting marketplace.
It will therefore be those retailers who have a particular point of differentiation
within their market – either based on product or price – which are likely
to succeed despite the tougher conditions. And it is these who will consequently
grow market share and ultimately help to sustain rents in key cities.” North
American cities continue to dominate the most expensive rents in the Americas
region. Los Angeles at tenth position in the global ranking follows New York as
the next most expensive destination, with San Francisco, Toronto and Vancouver
being the other cities to make the top 50. Miami, Montreal, Philadelphia and Washington
join Los Angeles and New York in the fastest growing index, although demand continues
to be restricted to prime pitches. Asia Pacific’s presence in the top rankings continues to be prominent, holding seven of the top 20 most expensive destinations. The scarcity of prime units continued to push rental increases in many markets, with Guangzhou, Shanghai, Hong Kong and Singapore all registering growth over the past six months. Guangzhou continues to be the most expensive Chinese city, having jumped significantly in the ranking from 22nd in Q1 2008 to 13th in the current ranking. About CB Richard Ellis CB Richard Ellis Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services firm (in terms of 2007 revenue). With
over 29,000 employees, the Company serves real estate owners, investors and occupiers
through more than 300 offices worldwide (excluding affiliate offices). CB Richard
Ellis offers strategic advice and execution for property sales and leasing; corporate
services; property, facilities and project management; mortgage banking; appraisal
and valuation; development services; investment management; and research and consulting.
CB Richard Ellis is the only commercial real estate services company named one
of the 50 “best in class” companies by BusinessWeek, and was also named
one of the 100 fastest growing companies by Fortune. (editor@thesynergyonline.com) NAREDCO CALLS FOR PACKAGE TO BOOST REAL ESTATE SECTOR Thesynergyonline Real Estate Bureau NEW
DELHI, NOV 22: The National Real Estate Development Council (NAREDCO) is engaged in promoting nascent real estate industry and safe guarding interest of all stake holders including buyers. It works under the patronage of Ministry of Housing and Urban Poverty Alleviation, Govt. of India and its members include NHB, HUDCO, PNB HFL, LIC HFL, HDFC in addition to leading developers, HFIs and other stake holders from private sector across the country. Few leading developers who are members of NAREDCO are DLF, Unitech, Ansals, Parsvnath, Omaxe, Assotech, Som Datt Builders, Sobha Developers, Eldeco, Raheja Developers, ATS Infrastructure, TDI, Mahindra lifespaces Developers, Vigneshwara Developers, Jaypee, BPTP, Sahara, Shipra, Suncity Projects, Amrapali, Ambience Infrastructure, Purvanchal, Era Landmark, Ashiana etc. The real estate sector had recorded a growth rate of 25 – 30 percent year on year basis and has been meeting one of the essential requirement of housing which is terribly in short supply. Contribution of Construction Sector to GDP has been around 8.53 percent and it has been one of the main employer for unskilled and semi skilled labour who are approximately 32 millions. The sector supports more than 250 ancillary units like cement, steel, paint, tiles, furnitures etc. Presently, the strict monetary policies of RBI for real estate projects and high rate of home loan finance by Indian banks, closure of ECBs and rise in interest rates together with stock market crash due to selling pressure of FIIs, have lead to a situation where credit is dried down and buyers are hesitant to purchase. NAREDCO, at a meeting decided to request all its members to "review their prices" of the properties by reducing their cost, cut down on their margin, cutting down advertisement and brokerage cost by becoming more professionally organized and by outsourcing some of the activities and to pass all the benefits to our customers. NAREDCO hope that this step will boost demand to some extent on one side and will benefit our customers who will get a life time opportunity to purchase property of their choice. NAREDCO feels that though the Govt. of India is taking measures to increase liquidity in the system and bring down home loan rates but it is just not sufficient to rejuvenate demand. Interest rate on home loan should be drastically cut by at least 3 -4 percent so that cost of borrowings can be reduced for a common man. NAREDCO also feels that the Govt. of India should take few pro active measures to boost the demand in the sector for more employment creation and to increase the growth rate of our country. Some of our suggestions are as follows: (a) Rescheduling of bank debt to the real estate developers, with a moratorium of one to two years. (b) Banks have become more risk averse presently, hence Govt. should advise RBI and banks to aggressively finance real estate projects, without calling it NPA. (c) Where land is purchased from Govt./Semi Govt. undertakings, then the banks should consider financing the land cost also in addition to the construction cost of the project. (d) FDI norms related to area and lock-in period should be further eased to encourage foreign investment. (e) ECB should be allowed for real estate projects. (f) Housing should be given status of infrastructure. (g) At present there is a mandatory requirement on banking institutions to provide loans for the priority sector of the economy within a prescribed percentage. With a view to encourage banks to provide finance to the Housing Sector, it is suggested that quantum of loans given to the first home buyer upto Rs. 30 lakhs may be allowed to be included within mandatory quota of the priority sector funding by the bank. This single step will encourage banks to provide more funding to the Housing Sector. NAREDCO has appreciated the steps taken by Govt. of India to boost liquidity in the system and therefore request to take above pro active steps to meet down the challenges posed by economic meltdown. The credit demand of the housing sector should be met at reasonable interest rate by further improving liquidity by RBI. Availability of liberal, easy and short term credit and meeting working capital requirements is the need of the hour, for completing ongoing projects, as also to retain the confidence of the market and to sustain growth. The real estate sector has the capacity to boost economic growth and create maximum job opportunities. It is, therefore, requested that real estate industry be provided all support and encouragement from the Govt. Urgent action is, therefore, requested from RBI's side to advise the banking institutions accordingly. (editor@thesynergyonline.com) MCHI TO SHOWCASE PROPERTIRES AT INDIA REALTY EXPO 2008 IN DUBAI Thesynergyonline Real Estate Bureau MUMBAI,
NOV 21 :
India Realty Expo 2008, to be held under the aegis of MCHI, a member of Confederation of Real Estate Developers’ Association of India (CREDAI), will provide an opportunity to NRI investors to explore abundant opportunities offered by the real estate sector in India in housing as well as commercial and retail options.
As many as twenty five leading developers, members of the MCHI, would be participating in the exhibition, 11th INDIA REALTY EXPO 2008 scheduled to be held at Renaissance hotel, Deira, in Dubai . The exhibition will remain open on 27th November, 2008 during 5 pm to 9 pm and on 28th and 29th November, 2008 during 11 am to 1 pm and 4 pm to 9 pm .
The objective of the expo will provide a platform to Indian developers to showcase their projects and at the same time offer an opportunity to the NRI investors to explore the vast opportunities and wide range of housing and commercial options available in the Indian Real Estate Industry from Mumbai, Thane, Navi Mumbai, Panvel, Pune, Bangalore, Goa, Nagpur and other Indian cities.
The expo will provide a one stop solution to all needs of a Non-Resident Indians intending to purchase a property in India . The exhibition will have representatives from major real estate developers such as Tata Housing, Hiranandani, Bramha Builders, Kalpa-Taru Builders, Sunil Mantri Realty, Kanakia Spaces, Rustomjee, Nahar Builders, Neelkanth Mansions , Prajapati Const., Godrej Properties, Nirmal Lifestyle, Akar Creations, G.Corp Properties, Pathy Housing and more, along with leading housing finance companies such as H.D.F.C. & D.H.F.I.
Mr. J. S. Augustine , MCHI’s Co-Chairman, International Exhibitions, said,” Investment in India is a greater opportunity for NRIs in UAE. The real estate prices in India currently are very attractive. The recent depreciation of Indian Rupee against the US dollar has turned beneficial to the NRI investors in UAE since this will give the NRI investor around 20% more property value for every dollar. NRIs can hedge their $ funds to get more returns especially when they are getting good deals from Developers. Considering these facts, The expo is expected to be a successful event this year like in the previous occasions. We are also doing a concurrent online exhibition for the benefit of NRIs to interact with the exhibitors. Dubai NRIs can even talk to the Developers on our Radio talk show during these days”.
Mr. Zubin Mehta, CEO, MCHI said, “We are glad to announce The INDIA REALTY EXPO 2008, which is entering into 8th year. The exhibitions organized by the MCHI have always proved successful occasions from the NRI buyers perspective in the past may it be in India or U A E. The forthcoming exhibition in DUBAI is being attended by prominent developers, who had their projects in almost all the categories such as IT, ITES, Retail, Entertainment, Banking, Financial, Hospitality, education and of course residential properties to suit all budgets ranging from 4 lacs to 2 crores and more. The event is expected to see substantial investments from the Indian and overseas companies.
He
further added that,”during trying times always rely on exhibitions organized
by reputed and official trade bodies such as MCHI to invest your hard earned money
for safety and security since almost all participants are reputed and members
of our body.” REAL ESTATE FIRMS CALL FOR HOME LOAN AT 7% Thesynergyonline Real Estate Bureau NEW
DELHI, NOV 20 : According
to DLF chairman KP Singh , prices have already been reduced in the last one year
as the industry was facing a slowdown. At present, the company has decided to
defer implementation of projects in residential and commercial sectors, instead
of lowering prices to increase revenues. "In
hotels, residential and commercial everywhere, the projects deferred because of
lower demand and liquidity crisis," DLF chairman said. He said that high
interest rates have affected the demand, adding that present pricing is competitive
and linked to supply and demand. Mr
Singh said government should ensure that home loan is available at 7 per cent
to prop up demand in the sector as many projects have been closed down by developers. Mr
Parsvnath CMD Pradeep Jain, who is also the president of Council for Real Estate
Developers' Association of India (Credai, Northern Zone) said that prices of on
going projects have already fallen to an extent that the profit margins have reduced
to single digit due to high inflation, which has increased the cost of construction
by 25 to 30% in the last one year. However,
going forward, he said there could be some correction in prices if that of steel
and cement go down. At the same time, the developers are constructing smaller
size apartments with comparatively low-grade specification. Such steps will lower
the per unit cost of apartments. Mr
Jain said unless price of land comes down, the real estate price will not decline.
If the developers would not be able to sell them at profit, they will shelve projects,
which is happening all over the country now. He added that reduction in interest
rates will help generate demand as it will help common customers. He said government
should bring down the home loan rate to 7 per cent. Mr Jain also demanded that banks should be asked to lend directly to realty companies with a moratorium on repayment for 18 months. At the same time, the realty sector should be given the industry status, which will enable banks to lend to the sector easily. Jain said as the real estate sector creates demand for almost 200 industries, the government should give it due importance and accord it proper status. (editor@thesynergyonline.com) DMAC PROPERTIES' FIRST PROJECT IN DUBAILAND UNDER WAY Thesynergyonline Property Bureau NEW
DELHI, NOV 18 : Based on a Chicago architectural style, the buildings at Lincoln Park will have ornamental entrance ways, flat rooves with parapet walls and sun terraces on top of the buildings. The ground floors will feature a range of shops and restaurants enabling those people living and working at Lincoln Park to make the most of their leisure time. CEO of DAMAC Properties Dubai Peter Riddoch welcomed the initial work on site at Arjan and said that the company was excited to see its first development at Dubailand get underway.'Dubailand will be one of the most exciting developments in the whole of Dubai's history. It is bringing worldwide attention to Dubai and will potentially open up the region to a whole new audience,' he said.'We have a number of projects in the pipeline in that locality but it is pleasing to see our first one get underway at Lincoln Park. We are very excited to be a part of this innovative and exciting new phase in Dubai's continued development.' Lincoln Park is due for completion in 2010 and is one of several developments that DAMAC Properties Dubai will eventually have in both the Arjan and Majan areas near Dubailand. Once completed Dubailand will be one of the world's largest tourism destinations - spanning more than three billion square feet and twice the size of DisneyWorld in Florida. Mr. Riddoch added: 'The creations of Dubailand offers yet another opportunity for companies like DAMAC to continue to be a part of the UAE success story and we are grateful for that.''We believe that the mix of residential and retails units we are constructing in this area will prove very popular with a whole range of customers from end users to investors.' 2008 has been the 'Year of Construction' at DAMAC Properties, during which its businesses have aggressively focused on construction and contract delivery to trusted and quality contractors. An impressive AED2.5billion worth of contracts have been awarded in the first nine months of 2008. From initial consultants through to enabling and main contractors, the company has awarded more than 60 contracts in the first nine months of the year - showing that it means business when it comes to delivery. So far approximately AED2.1billion worth of contracts have been awarded by DAMAC Properties in Dubai, AED45million at projects in Abu Dhabi and a total of AED320million by DAMAC International in Qatar and Jordan. In line with this, the company is making good progress at its major developments and has recently handed over 571 units at Lake Terrace in Jumeirah Lake Towers in Dubai and with the promise of delivery of 192 units at the Executive Heights project at TECOM in Dubai, 198 units in its Tera Del Sol developments in Discovery Gardens in Dubai, 536 units at LakeView in Jumeirah Lake Towers in Dubai and 847 units at The Crescent, located at IMPZ in Dubai, all before the end of 2008. Approximately a further 7,100 units are planned for handover in 2009/10 across the region. (editor@thesynergyonline.com) YEAR 2009 HOUSING YEAR ; MAHARASHTRA CM Thesynergyonline Real Estate Bureau
MUMBAI,
NOV 12 :
Among various announcements made for the real estate sector, the chief minister cleared the decks for Public Private Partnership (PPP) on various government housing projects.
Mr. Deshmukh said in view of an encouraging response from the government’s scheme of providing 0.33 FSI in lieu of TDR in Mumbai, the government was considering extending the scheme to the rest of Maharashtra. He also said the government was keen to extend 80 per cent IT/ITES across the state.
Addressing the “Advantage Maharashtra--Housing for all” convention held under the aegis of Maharashtra Chamber of Housing Industry, CREDAI Maharashtra and supported by the State government, held at the NCPA hall here , Mr Deshmukh said “PPP model has been a great success in Maharashtra and we will try to extend this possibility in the entire state on various government projects. We have observed that we have got the quality, timely possession whenever we have done Build-Operate-Transfer (BOT)/PPP projects”.
Mr Deshmukh further said, “Various departments in government, MHADA, Housing Board, MMRDA could follow the PPP/BOT method with a view to increase housing stock/commercial office stock”. The Chief Minister announced uniform slum rehabilitation scheme across the state. He said municipal bodies would give sanction on the carpet area. The redevelopment of old building with 2.5 FSI would be extended to entire Maharashtra.
The Chief Minister further pointed out that “as per the 10th five year plan there is a deficit of 27 billion houses across the country and it would be a great task to fulfill the need of a shelter to the common man”.
Mr Sunil Mantri, Convenor, Advantage Maharashtra in his introductory speech urged the state government to extend helping hand to the real estate which has been currently boring the burnt of global meltdown. “It is a crucial time for the government to push the real estate sector and consider various issues with a series of proactive steps“
In order to provide boost to the sector, the chief minister said that the government was considering automatic deemed NA permission upon plan sanctions, amendments in MOFA for layout townships and the concept of 25 acre township from existing 100 acre.
Maharashtra Minister of state for Urban Development, Mr. Rajesh Tope complemented the MCHI and the CREDAI, Maharashtra for their efforts in organizing a convention based on the theme of housing for all. He further said that the state government is keen on offering lower tax on the green building and renewable energy initiatives.
MCHI president Mr. Pravin Doshi in his opening remarks appreciated the key role played by the state government and great support from the Maharashtra Chief Minister Mr. Vilasrao Deshmukh towards the real estate and infrastructure development in the state.
Speaking on the occasion, Maharashtra Minister of state for housing Mr. Pritamkumar Shegaonkar, said, “I am happy to see the initiatives by the real estate developers towards realizing the dream of affordable housing in the state. The developers need to consciously take efforts in order to instill confidence and create trust among the common man, who always feel that the developers construct housing for the rich and higher middle class people of the society.
Mr Anant Rajegaonkar, Co-convenor, Advantage Maharashra said, “The support of the state government would go a long way in improving the real estate scenario in the state. It will also help the government realize its dream of housing for all.
Prominent among those who attended the event included CREDAI Chairman Kumar Gera, and Mr Rajni Ajmerae.
The day long convention which is held here today was addressed by the eminent speakers such as CREDAI Chairman Kumar Gera, Senior political leaders such as Manohar Joshi, several senior government officials also attended and addressed the seminar. (editor@thesynergonline.com) ASIAN OFFICE MARKET FACES INCREASING SLOWDOWN Thesynergyonline Economic Bureau NEW
DELHI, India, NOV 07 : Prime office rentals in the third quarter were static in major CBDs including those in Beijing, Hong Kong, Seoul, Ho Chi Minh City and Singapore. Tokyo recorded its third consecutive quarterly drop in rentals, confirming the early phase of a downward cycle. Average prime office rents began to consolidate in New Delhi, Shanghai, Philippines, Manila and Bangkok. Vacancies across the region started to increase with a rise in the office vacancy rate observed in 12 out of the 17 markets tracked by CBRE. However current vacancy levels still remain generally lower than those recorded in the third quarter of 1997 during the Asian financial crisis, and many markets have suffered from a supply shortage over the past 12 months. At the end of the third quarter 10 markets recorded a vacancy level below 5%. According to Anshuman Magazine, Chairman & Managing Director, CB Richard Ellis, South Asia, "Leasing activity in India has slowed down during the third quarter. This was because businesses began to feel the impact of financial turmoil overseas." The low volume of leasing led to a marginal correction in quoted rentals for the New Delhi CBD. Rentals across premium buildings in Mumbai also underwent a correction while rentals in Bangalore stayed static. In Tokyo a number of Grade A buildings found it tough to fill vacancies as tenants became increasingly reluctant to commit to space at high rents. In the prime district of Marunouchi/Otemachi/Yurakucho, over 40,000 sq.ft. of Grade A office space was reportedly vacated during the third quarter and has remained empty. Although sentiment in the Seoul office market cooled, rental rates climbed marginally as the strong market up to the second quarter of 2008 created a ripple effect. Many occupiers in Singapore are chasing lower costs and are relocating to decentralized locations, built-to-suit facilities and business park space. However, Marina Bay Financial Centre managed to boost pre-commitment to 65.6% as three foreign companies pre-leased some 241,000 sq.ft. of space. In Hong Kong, demand from the financial sector - the dominant driving force for rental growth over the past five years - fell as investment banks postponed or cancelled expansionary plans. However, the Central CBD managed to enjoy a further 2% q-o-q growth in rentals to HK$134.7 psf per month (US$17.4 per sq.ft. per month). Turning to China, the positive effects of hosting the Beijing Olympics and Paralympics could not prevent the office rental growth from slowing as leasing activity took a backseat to the games. In Shanghai, office rentals in Pudong recorded their first downward movement since 2005 as the large quantity of new supply launched over the past nine months began to impact the market. Meanwhile, the Guangzhou market shifted in favour of tenants with landlords adopting a softer approach at the negotiation table than before. These trends in the Asian office market reflect the deterioration of overall business sentiment across the region. Confidence has taken a hit despite the fact that corporate bankruptcies and job cuts in Asia have been less severe than those in the United States and Europe. The impact of this change in business confidence is therefore reflected in the commencement of a period of consolidation in the region's prime office markets. (editor@thesynergonline.com) 'INTRODUCE REITs TO REIGN TRANSPARENCY IN REAL ESTATE' Thesynergyonline Economic Bureau NEW
DELHI, NOV 07 : A note to this effect has been forwarded to Securities and Exchange Board of India (SEBI) by the ASSOCHAM, stating that REITs can also help develop Commercial Mortgage Backed Securities (CMBS) market and create a source of cheaper debt for commercial real estate. The ASSOCHAM has pointed out that since purchase and sale of real estate assets would form part of the activity of REITs, the presence of a large number of REITs can enhance liquidity in the secondary market for commercial real estate. The increase in liquidity would make the sale of assets – if necessitated in CMBS structure easier, thereby improving the attractiveness of CMBS. The Chamber has further pointed out that principal repayments to CMBS investors are made through refinance or sale of property; hence the enhanced liquidity in commercial real estate will make CMBS more viable, in terms of availability of refinance and quicker sale of property. However, in the case of CMBS originated by a REIT, the REIT would own the property. As a financial investor, the REIT would be more inclined to let the CMBS trust enforce the mortgage and sell the property. The REIT’s franchise with its unit holdrs would improve if cuts its losses from a property that did not provide adequate returns. REITs
typically own a variety of real estate properties, often even across geographies.
They thus offer a pool of well-diversified Globally,
the REIT industry has grown dramatically in size and importance. Tax benefits,
and the ability that REITs give to small There are 191 companies in US whose Sector Market Capitalisation are 221.06; Australia, 65 and 53.37; UK 26 and 31.75; France 26 and 31.75; Japan 42 and 24.40; Canada 35 and 13.59; Singapore 15 and 8.47; Hong Kong 5 and 3.95; Belgium 15 and 3.54; New Zealand 9 and 1.51; South Africa 5 and 1.35; Taiwan 7 and 0.94; Turkey 11 and 0.80, South Korea 12 and 0.67; Malaysia 14 and 0.65; Greece 2 and 0.38; Thailand 7 and 0.29 and Bulgaria 11 and 0.13. REITs can play an important role in the development of CMBS. One of the main risk factors in CMBS is the legal process involved in enforcing mortgages on defaults by developers. The repossession and sale of property involves a legal process, which, in Indian conditions, may delay repayments to CMBS investors. This risk becomes even more pronounced when developers also own the property mortgaged. Developers may be influenced by franchise-related issues, and may not want to alienate the property even when unable to repay debt; they may then resort to legal means to stall the sale process. The US still accounts for over half of the global REIT market (53.2per cent) although this percentage has been declining as a result of conversion of public REITs to private REITs in the US and REIT IPOs elsewhere. The growth and increased profile of REIT markets has led to an increased level of specialist Global REIT funds being launched. (editor@thesynergonline.com) MAHINDRA LIFESPACE H1 PAT UP 20 % AT RS 21 CRORE Thesynergyonline Real Estate Bureau MUMBAI,
OCTOBER 26 :
The profit after tax for H1 FY 09 is Rs. 20.95 crore. The profit after tax for H1 FY 08 was Rs.32.07 crore including Rs. 14.53 crore, consisting of Rs. 4.87 crore on account of one time income on sale of investments and Rs. 9.75 crore on account of arrears of preference dividend. The profit for H1 FY 09, on a comparable basis, is higher than the profit for H1 FY08 by 20 per cent. The profit after tax for Q2 FY 09 is Rs. 11.20 crore. The Profit after tax for Q2 FY 08 was Rs. 19.87 crore including Rs. 9.75 crore on account of one time income of Arrears of Preference Dividend. After excluding this one time income, the profit for Q2 FY 09, on a comparable basis, is higher than the profit for Q2 FY08 by 11 per cent. The standalone results have been subject to a limited review by the auditors of the company.
The consolidated total income has increased by 54 per c ent to Rs. 167.97 crores in H1 FY09 from Rs. 109.00 crore in H1 FY08. The unaudited consolidated profit after tax has increased by 23 per cent to Rs 32.57 crore in H1 FY09 from Rs. 26.57 crore in H1 FY08. The consolidated results have not been subject to a Limited review by the auditors of the company.
‘Mahindra Splendour’, a residential project at Mumbai has bagged the IGBC Green Homes Pre-Certified Platinum certification in September 2008 from the Indian Green Building Council (IGBC). The Company has pioneered the cause of sustainability in the residential real estate space with the Green Construction philosophy.
Development work is underway at the company’s residential project, ‘Mahindra Chloris’, near Delhi Public School at Faridabad .
The company’s subsidiaries, Mahindra World City Developers (MWCDL, Chennai) and Mahindra World City (Jaipur) (MWCJL) have been rapidly growing their customer base and development activity.
At MWCDL, Chennai, total employment by the companies operating in the Business City crossed the 10,000 mark during the quarter and the Company received a Developer of the Year Award from the Export Promotion Council for EOUs & SEZs (EPCES) and the Madras Export Processing Zone (MEPZ) for its contribution to the growth of exports from SEZs. Mahindra World City , Chennai added 5 global customers during H1FY09 including Renault Nissan, Armstrong, JC Valves, and Mekaplast in its expanded project area.
The company’s 2nd Integrated Business City , MWCJL became operational within 2 years of the signing of the Shareholders Agreement with the State of Rajasthan with Deutsche Bank and Infosys inaugurating their campuses at the IT SEZ at Mahindra World City , Jaipur. A total of 24 customers have signed MOUs / Lease Deeds for establishing their facilities at Mahindra World City, Jaipur, the most recent being ICICI Bank which will be establishing an IT Hub in Mahindra World City, Jaipur. (editor@thesynergonline.com) CHANGING PARADIGM IN INDIAN REAL ESTATE SECTOR Pradeep Jain, president, CREDAI NCR and Chairman, Parsvnath Developers THE global economic slowdown and the lack of liquidity in the market are the two aspects that are affecting the entire economy. The real estate sector that was growing at a fast rate and was scaling new heights has felt the pain and has been hit hard especially more with the perception of various communities. I feel this CII stage offers me an opportunity to share my feeling on behalf of the sector about this temporary phase which is going on. However I am confident that this will be corrected eventually. The real estate sector have been of immense interest to people across the globe. This was evident from the fact of huge investments made in the sector. However, the sub prime mortgage crisis had a cascading impact on the Indian financial system. This resulted in a conservative lending approach followed by banks that inevitably increased the home loans following the impact of CRR and repo rate hike by RBI. The move dried up the existing liquidity in the markets which is evident from the current share market fall. The move has given critics a further boost to question the liquidity positions of the developers and to argue that the growth in the real estate was mere a bubble which has now burst. They are, now without being aware of the ground realities, boasting about developers being trapped in a cash tight situation. This inturn has influenced the spending capacities of publics and has to some extent restricted the growth of the Indian Real Estate Sector. To add to the misery, higher risk weightage attached to the real estate lending has been dampened the image of the sector’s growth. We
should recall that this is the sector that provides assistance to 245 ancillary
industries, is the highest employer to the below poverty line; second largest
employment generator in the economy where the top five real estate players employ
more than 2.00.000 employees at different locations. The
sector been instrumental in changing the face of India from being an underdeveloped
country towards accelerating its way to a developed country. It is evident from
the state of art infrastructure developments, buildings, townships, shopping malls
which are not only restricted to the urban cities but are also spread in the Tier
II & Tier III cities and make them stand at par with the modern towns. These concerns have increased the negative sentiments of persons who have over the period maintained a negative perception about the Real estate sector even when the sector witnessed growth rates to the tune of 30 per cent and is contributing 8.53 per cent of the total GDP . The sector has emerged as the fifth largest destination of foreign investment. However, the negative vibes created have hit back and have been hampering the growth of the Indian economy and has brought it to a stand still. Envisaging the impact, the RBI in order to stabilize the Indian financial system has reduced CRR to 6.5% that would infuse additional liquidity of Rs 1,00,000 crore in the cash starved market. Subsequently RBI for the first time since 2004 has reduced the Bank repo rate by 100 basis points to 8 percent. This would reinforce banks’ confidence in lending by infusing more liquidity. The steps taken are barely sufficient to keep our economy safe in the current scenario and not grow from the prevailing levels. In order to steer through these tough times the RBI needs to further cut the repo rates probably by another 100 basis points and reduce CRR as well. The higher risk weight on the real estate loans should also go. Going forward, we do not see any decline in the demand from the end users as there is a shortage of 27 million units. As the population keeps on increasing, the demand is further expected to escalate from current scenario. Even, as of today the demand is much higher than the government authorities without the presence of private real estate developers can fulfill. It appears obvious from the 8.50 lakh applications received for mere 5010 flats on sale by DDA. The recent reports by real estate consultancy firms validate the view point. The report by Cushman &Wakefield has hit hard on the face of pessimists who questioned the future of the real estate Sector. As the industry report states that the demand for real estate across office, retail, residential and hospitality sectors in the country is expected to cross the 1,000-million sq ft bench mark by 2012. The residential segment would contribute 63 per cent of the total real estate construction during the term under consideration and would continue to drive real estate demand with 687 million sq ft. The commercial office space is projected to be 243 million sq ft and the retail and hospitality segments are expected to constitute 95 million sq ft (9 per cent) and 73 million sq ft (6 per cent) of this total demand, respectively. Considering the burgeoning demand we have been offering commercial and residential properties both in the affordable and the premium luxury segment. However, we cannot meet the needs and keep up to the demands of the customers without the support of the government. Thus
for the prosperity of the sector at general and customers at large the government
should facilitate the efforts of real estate developers by providing Minimum infrastructure
guarantee under habitation policy, Relaxing guidelines on foreign investing in
Indian Realty, Reducing risk weightage and by giving the sector “industry
status” coupled with reduction and uniformity in stamp duty. And
of course by doing away with the restrictions on real estate loans. We only hope
the second most important sector recievs due attention and support from all-government,
banks, bureaucrats and media – to maintain the growth. To communicate the
need we need the fourth estate to come in the aid of real estate. (npsinha@thesynergonline.com)
GLOBAL REAL ESTATE INVESTS IN VELANKANI TECH PARK, CHENNAI
Thesynergyonline Real Estate Bureau NEW
DELHI, OCTOBER 21 : Velankani Tech Park is expected to house around 20-30 global component suppliers and will meet ready-to-move-in space requirements of vendors to telecom original equipment manufacturers & Electronic Manufacturing Services (EMS) giants looking to set-up operations in Sriperumbudur.
Kiron Shah, Director and Founding Member of Velankani Group, commented that the development is uniquely positioned and has a first mover advantage in the region. “The Velankani Tech Park is the only SEZ which will offer a plug and play facility in Sriperumbudur for companies and a seamless experience in commencing operations. Substantial effort has already gone into the conceptualization of the project over the last two years leading to commencement of development at the project site. All basic infrastructure will be provided by Velankani to meet tenant requirements including future expansion.” He further added “AIG Global Real Estate brings tremendous experience in development of industrial parks worldwide and we are excited to partner with them. We will benefit from their global client relationships and hands on design and development expertise. This partnership is a starting point and we believe it will flourish and grow in the future.”
Rajesh
Agarwal, Managing Director, AIG Global Real Estate India, stated, “We are
excited to partner with the Velankani Group and invest in a project that caters
to an unfulfilled demand in the region. We look forward to strengthening and expanding
this relationship with Velankani. This investment is a statement of AIG Global
Real Estate’s continued commitment to India and our investors, and we are
looking forward to expanding its presence in India and building strong relationships
with local partners and investing in attractive opportunities in the region.”Avista
Advisory Group were advisors to the Velankani Group on this transaction. (npsinha@thesynergonline.com)
DEMAND FOR PRIME OFFICE SPACE IN KEY CITIES WITNESSES SLOWDOWN Thesynergyonline
Real Estate Bureau NEW
DELHI, INDIA , OCTOBER 21 : Many corporate occupiers, especially in the IT/ ITeS sectors have postponed or curtailed their expansion plans. Together with this, the fund availability for the sector which was already constrained due to the inflation control measures of Reserve Bank of India, will be further curtailed by the recent financial crisis in the US and its ripple effect on rest of the world. Commenting on the findings of the report, Mr. Anshuman Magazine, Chairman and Managing Director, South Asia for CB Richard Ellis said; "The global economic slowdown has started to show early signs of impact on the offices market. The third quarter of 2008 has seen some decline in the office space take up across the country. Going forward this is expected to keep office rentals under check." During the 2nd quarter review, a slack in demand combined with the inventory build up had starting dampening the office space values across all the 7 cities, albeit in varying degrees. It was also reported that while the Central Business Districts did not see much demand due to limited space, the peripheral markets saw increased demand due to quality space being made available at affordable prices. Another trend that came to the forefront was the increased flexibility on the part of the developers and landlords to negotiate on the quoted commercial terms - a reflection of the pressure being felt in the market. Rentals in the National Capital Region are likely to remain stagnant for the next few quarters. On the other hand the demand for corporate office space is not likely to be affected in the next few quarters, especially in the micro-market of New Delhi where maximum space take up is in this category rather than IT/ITeS. In light of the global conditions and the fact that Mumbai is the financial capital of the city, rentals and capital values across most micro-markets will see a further correction. This can turn out to be more severe by mid 2009, if there is no improvement in the overall economic climate and the supply hits the market as per the timelines indicated by the developers. The total space take up till Q3-08 has 5.3 million sq.ft. As compared to this, the total absorption till Q3 last year was approximately 9 million sq.ft. The space absorption in Bangalore has dropped quarter on quarter this year and clearly the economic slowdown in the global markets has left a mark on the Bangalore office sector. With the STPI benefits coming to an end soon, the next wave of developments in Bangalore are expected to be in SEZ spaces. Clearly the major developers in Bangalore are betting big on SEZs to lead the space take ups in the coming years.
In Hyderabad rentals have stabilized across various micro-markets. Considering the current demand scenario and with developers postponing and further phasing out the supply, rentals are not expected to move upwards for the next few quarters. The supply of Grade-A space in CBD is still nonexistent and the situation is not expected to be alleviated. In response to the sluggish market conditions, planned and under-construction supply is being delayed.
In line with the subdued economic outlook, office leasing in Kolkata is also experiencing a temporary stagnation. Though the city has emerged as a viable destination for corporate set-up, backed by proactive government and adequate infrastructural development; certain adverse political developments have impacted the city's image. However, positive measures are being taken to rectify the harm done. Overall
the office market space in the key cities in India has witnessed a slowdown which
is expected to continue over the next few quarters. This is reflective of the
global economic conditions affecting commercial real estate in India. However
we are still confident that the Indian growth story is secure and would continue.
(npsinha@thesynergonline.com)
Thesynergyonline Real Estate Bureau NEW
DELHI, OCTOBER 10 : Getting up early in the morning, negotiating traffic snarls, and dealing with pollution, dealing with the high stress of office or business - Life in metro has indeed become very taxing. After a tense and hectic day what one longs for is the comfort of home. But if the residence itself is a quagmire of sound and air pollution then indeed there is no escape. There is virtually no space in Delhi and even the NCR region is seeing a mad rush where high rise buildings are taking precedence over relaxed and calm environment. The quest for green environment has led a few builders in the NCR to concentrate more on the "Green Quotient". One such project that is creating huge interest is the GreenIsle, a project by Saviour builders in Crossings Republik. GreenIsle means a small green island. It very well does justification to its name by having lush greenery. Marching towards the new age GreenIsle offers not only homes but a lifestyle that is contemporary, elegant and tranquil. Crafted with aesthetic sense and great architecture, it represents itself as the most modern abode that rests amidst sprawling greens. Saviour Builders are building new age apartments Greenisle heart of the city Crossings Republik. GreenIsle will be the new definition of luxury homes for everyone in real estate. Saviour Builder's new GreenIsle apartments will be available at Ghaziabad's posh area Crossings Republik. Greenisle will be luxurious and magnificent in its interiors and exteriors too. Greenisle's multistoried apartment is building in the large area of 23,000 square meters with a huge sum of amount. The Apartments are built in the huge area of 6 acres and more than 12 lakh Sqft is the construction area. There are approx 1000 housing units. The mode of fund raising for the project Greenisle is banks and other financial institutions. The Chairman of Saviour group Mr. Iqbal Singh Sodhi says "We realized that a noisy city life makes the residents tired with its cut throat competition, maddening crowd, and severe traffic congestion and pollution attack. With these difficulties people seek a home amidst serene environs - A home, where you feel the view of open sky, twinkling stars, that soothes you and where Mother Nature caresses you by keeping your heart, mind and soul, calm and composed. Taking all these essentialities as prime priority, a green habitat, GreenIsle was born, that rests in India's First Global City, Crossings Republik". Don't wait to buy real estate, buy real estate and wait The Green quotient in the GreenIsle is sufficiently handled, but it is also true that with the sub-prime crisis in the US, the real estate sector in India has also hit a plateau. But if you are planning to buy your first home, waiting for interest rates to cool down serves on purpose as the costs even out in the long term. Even for investors, GreenIsle provides a bountiful of attractive features at affordable price. As T Harv Eker once remarked: "Don't wait to buy real estate, buy real estate and wait."
Commenting upon the recent slowdown and correction in the real estate market, Mr.Yashpal Dhama, Director and CEO, Saviour group stated, "In the buoyant market, all developers do well. It is in the downturn that the natural selection and discernment process starts and it is then that a professional developer with industry-best standards and practices benefits and gains more recognition and trust from buyers. Now is the time that we expect to reap the fruits of our sustained diligence and ingrained professionalism." "Sustainability is directly linked to resources and resourcefulness demanding holistic approach. The basic principles of sustainable development such as building configuration, energy use, water conservation, air quality, maintenance, recycling and material specification would be the key parameters we are implementing in this project ," he stated. What makes GreenIsle commercially attractive is its location. Proposed 6 lane express way is just near to it. Its proximity to proposed metro station makes it more special in every manner. With such attractive features, appreciation in rates cannot be ruled out. Besides, it provides with all the day to day necessities & luxuries simultaneously. It provides the customers with a swimming pool, health club, golf course, fountain parks, jogging track, spa etc. It consists of a modular kitchen, each kitchen with the facility of RO supply and the most important thing is that GreenIsle is situated right next to the golf course and the lake. The apartments are not only stunning but are available in the most reasonable prices. The 2 bedroom flats are in the total area of 1250 sq. ft. The 3 bedroom flats are in the area of 1600 sq. ft. and the 3 bedroom flats are in the area of 1800 sq. ft. It possesses a study room as well for the working professionals & students. Keeping in mind the affordability the prices are not much and it's an excellent opportunity for the buyers.
Till now the real estate sector has never seen the use of Technology in such a better way as it has been in Greenisle. It is equipped with all the comforts and luxuries which any human heart will desire. This edifice stands tall with its sky scraping towers offering you the option of luxurious 2/3/4 bedroom apartments that give desired space to your life. Here you find the rare combination of fascinating features and state-of-the-art amenities that you have always desired for your dream home. The Director Yashpal Dhama says "Greenisle is the place for comfort & luxury and will your soothe your complex life giving you the mental & physical relief. GreenIsle has become a synonym to style, class and innovation. It has all the modern standards that one can think of." According to the Director Mr. Lakhbir Singh Gill says "The luxuries and the lifestyle provided at Saviour Group have taken a different turn altogether by bringing together best of all the worlds standards. Being one of the promoters at Crossings Republik surely make us feel a part of the global boom which has already struck the Indian Market."
The Director further adds "We are proud of a spectacular track record and today, can be credited with changing the very face of the Delhi, National Capital Region." Indeed
green projects like the GreenIsle intends to cover all the areas of modern standards
that can quench the thirst of each and every customer who dreams of living in
a Global city with the global standards.(npsinha@thesynergonline.com)
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