Monthly Archives: March 2010

Supervision of Realty Activities Necessary

ICC Construction Continues...
In India there is no qualified consumer movement supported by thorough research conducted by voluntary research organisations to recommend the avenues for investment in property. The

The present enhancement in realty prices throughout India has given a new outlook to the investment in realty. The resources in real estate have slided from need oriented to profit based.  Last five years advancements have brought 300% to 400% returns in finance in realty sector.

The legal system in India is so over hindered and costly that the investors are considering surrendering their money as a good option than to knock the law doors which is benefitting the estate agents.

The enforcement of Consumer Protection Act 1986 acted as the turning point in the Indian history. The common educated man is enlightened now but what is the immediate need is the a Ralph Nadar who makes the mass awareness.

A step forward was initiated by the voluntary organisation, Common Cause, headed by of HD Shourie towards promoting an organisation to infuse discipline among various participants of the industry.

1) This organisation demanded a National Real Estate Development Council, which aims at administrating various actions related to realty.

2) Another method included allocation of ratings to builders.

The activities of guiding these authorities should cover all sectors concerning real estate development. There should be similar authorities in all big cities enforced by Central Government. The concerned delegation should maintain the records for the past projects including purchases and deposits of individuals.

With the proposal of any new project there should be strict instructions to get the details registered with the related authority for the property developers. All transactions related to finance should be governed by authority to avoid misuse of investor’s values by developers.

There should be regular inspection by the authority by visiting sites to supervise the construction schedule given by builders. The authority should also have the power to increase the deadline of the project completion.

If in case any builder fails to complete the project within the predetermined period even after the extension of the deadline, then the project should be given to a new builder in the same condition as it is keeping in mind that the investors should not suffer. Such builders should be discarded and should be charged a heavy penalty.

Gawk on India by Euro Realty

Düsseldorf [36/365]
Photo by Farruska

Europe is once again back into action with an prelude of investment for Kolkata’s real estate in a move deemed “a first” by experts. Expo Real, the largest European B-to-B trade fair for the international property and investment market , is the biggest European commercial property trade fair.this is an annual event that take place since the beginning of October 1998 at the new Munich Trade Fair Centre. The organiser of this EXPO REAL is Messe München International. Exhibition focal points are project development, consultancy, investment and financing in the real estate sector.

In its October meet in Munich, the organizers of Expo Real had a meeting with the Senior Members of Credai’s state chapter they offered a  match-making forum with international investors and tech titans.

Eugen Egetenmeir, the managing director of Messe München GmbH, the organisers of the trade show, told city realtors” The world gawks on India, and we will be keenly interested in taking this opportunity to build the platform between European resources at Expo Real and Indian real estate projects and Kolkata is the good start for us”.

It was a three-day business-driven event that focused on commercial realty — office, retail, logistics, tourism, infrastructural real estate and residential portfolios. The 13th edition is scheduled to take place at the New Munich Trade Fair Centre from 4 of October to 6 this year, and the organisers anticipate to host an exploratory delegation from India for the first time.

“This is a exciting opportunity for the local realty trade to emphasize its strong fundamentals and get benefited by valuable exposure in the European market,” as pointed out by Credai Bengal president Pradeep Sureka.

“We will hopefully hold a fact-finding assemblage of Indian developers to the Munich trade fair this year, and Kolkata should turn up in a appreciable number to join that team.” observed Santosh Rungta, the national president of Credai.

Claudia Boymanns, the exhibition group director quoted,”The Messe München team decided a scoping conference would be the ideal platform to build on, since at Expo Real, Indian realtors will get international “investors and money”. She  flew down from Munich to meet the Calcutta real estate group. She said “Expo Real’s exclusive programme of conference events speakers gives participants insight into the latest trends and innovations in the property, investment and finance market.”

Apartments in Delhi by DLF


DLF, the country’s largest realty player, being a strong competitor in the residential property sector, announced flat offers in Delhi with a costing of Rs. 4 cr. Per unit at the center of the National Capital.

The launch of the third phase of a housing project — Capital Greens — at Shivaji Marg, close to Moti Nagar (near Central Delhi) is followed by the offer of 150 luxurious flats by the organization. The cost for the apartments is estimated at Rs 11,000 per square feet.

Rajeev Talwar, the Group Executive Director of DLF told PTI that since now-a-days demand for luxury products is very strong, if they provide a good product at a fine rate, it will sell.

He also added that while the costing of apartments is quite high, these are still not ahead what other developers are offering in the luxury sector in the city.

The realtor Emaar MGF in its Commonwealth Games project, is selling flats at Rs 12,700 per square feet.
Moreover, there are two residential projects by Parsavnath in the National Capital — one at Civil Lines (North Delhi) tagged at Rs 10,000 a square feet. and the other at Subhash Nagar (West Delhi) priced at Rs 7,500 per square feet.

DLF’s third phase will be composed of 4-BHK apartments only with a size of about 3,000 square feet is the next commitment by Talwar.

He also added that around 70 units are already booked and they will keep the bookings open till all the apartments are sold.

The first and second phases were launched with 1,400 and 1,250 units respectively by the company last year.

In 2007, DLF had acquired 38 acres from DCM Shriram and Lohia Group for Rs 1,675 crore, and the ‘Capital Greens’ is being developed on that land.

The ‘Capital Greens’ is being built on the land of 38 acres which DLF had accrued in Rs. 1,675 cr. from Shriram and Lohia Group rom  Shriram and Lohia Group in 2007.

Revival of Realty

Indian real estate in the last few months has authenticated a reawakening enforced by a noticeable increase in the level of construction activity of low-budget housing coupled with low home loan rates.

As researched by Boston Analytics, the Indian realty sector has undergone an increased supply and pace of development activity which brought an improvement in pessimism associated with the realty prices. A low interest rate on home loans driven by Government’s impetus packages have also catalysed the Indian consumers to buy homes.

“Increased supply, improvement in pessimism related to realty sector rates, and low rates of interest on home loans seems to be encouraging Indian consumers to firm up their home purchase decisions” as said by Shirin Bagga, Economist, Boston Analytics.

The data was collected by conducting a monthly survey that targets 10,000 respondents cross 15 Indian cities—Delhi, Mumbai, Hyderabad, Kolkata, Chennai, Bangalore, Chandigarh, Nagpur , Ahmedabad , Kochi, Jaipur, Lucknow, Bhubaneswar, Patna, and Vishakhapatnam.

According to the recent reports the conviction concerned to speed of construction activity conveys moDelhi Properties - Real Estate India - Unitech Ververe anticipation with regards to observed change in construction activity in Tier II and Tier III cities relative to Tier I cities.

The real estate projects which are in different phases of completion in all levels of towns and cities appear to be introducing optimism about the expected change in construction activity among respondents across Tiers,” the report said.

As brought into light by Economic Survey of 2009-10, the need of the construction and real estate sector in creation of both financial and physical assets has been amplifying over the years. The construction sector now accounts for 8% of GDP at constant prices, hiked from 7.7% in 2004-05.Equivalently, the share of real estate ownership of dwelling and business services in overall GDP as hiked to 9.2% in 2008-09 from 8.9% in 2004-05.

The TCI Demerger

India’s leading integrated supply chain and logistics solutions provider Transport Corporation of India Ltd announced on Wednesday that its board has approved the demerger of its real estate & warehousing undertaking into a new company named TCI Developers Limited (TDL) which will be effective from April 1.

The company emailed a press statement saying the demerged entity would have properties and investments with a book value of 50 cr rupees. The company has Real Estate properties in metropolitan cities including Delhi, Chennai, Pune, Nagpur, Bangalore, Ahmadabad and many more.

Hong Kong Container Terminal
The management said it believes that TCI’s Real Estate & Warehousing undertaking has the potential to develop the company’s existing real estate into commercial ventures and create a focused entity to develop large scale logistics infrastructure projects like multi-modal logistics parks, truck terminals, free trade warehousing zones etc.

By the creation of a separate entity, the management intends to provide strategic direction and raise adequate funds for its development plans on the strength of its future profitability and growth. After the demerger, shareholders of TCI will get one equity share of 10 rupee face value in the transferee company, TCI Developers Ltd, against every 20 equity shares of 2 rupee face value.

The company’s Executive Director Vineet Agarwal was quoted in the press statement, “Investment in real estate & warehousing is more capital intensive and yields return over a longer period of time in comparison to the services model of the logistics business. Going forward, on a long term basis we would look at raising funds from strategic investors and financial institution”.

More Cautious 2010 by Realty

Indian developers are looking forward to more feasible studies of any project before actually launching them so that they can avoid the excesses that resulted in the real estate downturn in 2009.

They are sending out a message that antagonism in the market will not be accepted any more and gigantic projects will be replaced by developments that buyers want rather than speculators.

Some fairly new measures will be taken in such a sector dominated by family-run businesses. According to property consultants they are entering into strategic affiliation
for labour and raw material, appointing project management consultants, and outsourcing construction work for quicker delivery.

Aditi Vijaykar, executive director (residential) at Cushman and Wakefield India said,‘Builders are back with a bang but not an aggressive one. They want to try out new locations for projects and are trying to test a product before launching it’.

India’s largest developer by market value, DLF, will not buy land in current year and the next neither it will launch any new projects until and unless it has regulatory approvals. Presently the working capital model of DLF will depend on cash flow from pre-sales, customer advances and bank debt. Though it is not that easy to stop abstract buying, but a system like one home per family is required.

The realty sector is now conducting feasibility studies on the sizes and pricing of homes to ensure the right profile for its projects which was rarely done in previous years. Developers are also looking at special purpose vehicles or joint ventures instead of purchasing land outright. The real estate firms are also raising money though initial public offerings are aiming to use the funds for ongoing and proposed projects or to retire debt.this is extremely different from what it was done in 2006 and 2007 when everybody was interested in making money.

Palm Hills in Gurgaon

One of India`s leading real estate developers, Emaar MGF Land, announced the launch of a new mid-income housing project `Palm Hills` in Gurgaon in NCR. It will be located on NH8 with the prime location in Sector 77, Gurgaon. The total investment will be Rs 500 crore as said by sources on an area spread over approx. 29 acres with a scenic view of the Aravalli Hills.

Palm Hills proposes to house1250 units approximately with an expectation to raise up to Rs 3,850 crore. With a starting price tag  of Rs 48 lakh the company has already sold 650 units in the first phase. These apartments will be giving a feeling of a villa with unique features that no development serves. These will include 3 and 4 bedroom apartments with 1450sq ft to 1950 sq ft per villa. These villas have efficient floor plans and offer us the choice to make amendments to maximize our living space.

Shravan Gupta, executive vice chairman and managing director of Emaar MGF said, “The launch of Palm Hills marks the obligation of Emaar MGF to continuously develop properties with modern design concepts  and gives the experience of living in a gated master planned community a new definition. “The exhilarating response on the very first day of the project launch is an indication to the predominating huge demand for quality housing in the mid-market segment” he added.

Palm Hills are located at only a 20 min drive from Delhi`s International Airport and surrounded with green landscaped areas with a tinch of Spanish styling architecture.

The rocketing success of Emaar MGF can be guessed by taking a look at their reserves.they have a land bank of 11,340 acres.including the Commonwealth Games Village it is currently working on 29 projects.

Snowy palms in Beacon Hill
Emaar MGF which is a joint venture between domestic firm MGF and Dubai-based Emaar Properties is planning to utilize Rs 1,972 crfor part re-payment of debt of over Rs 5,800 cr. It will also be investing Rs 276.8 cr in paying development and licence renewal charges.

Boom of Shopping Malls

0878 10-11-2003 London
A Shopping Mall
March 11, 2010

You must be astonished by the growth of India in terms of rapidly increasing number of Shopping Malls. You must also doubt that where they will find so many shoppers and lodgers. But the experts claim that  as compared to developed and other developing countries, the mall culture in India is still in fledgling stages.

A super mall, which is at least 11.2 lakh sq. ft. in size is still in dreams of India while the US had 50 of them and even South Africa 21 way back in 2005.

Asipac, a Bangalore-based real estate development consultancy, made a study of this growth and came to the conclusion that while Australia has 75 regional malls(5-11.2 lakh square feet) besides 15 super malls, India has just 12 malls which can be considered regional.

The recently opened Mantri Square in Bangalore, country’s largest one, is even less than one fourth of the Dubai Mall – 3.77 million square feet, the  world’s largest mall.

Therefore,it can be inferred that there is a room for 100s of more mega malls as India advances its ambition to become a super power economy with a big middle class merchandise.

Cement Players Diversing Towards Realty.

Cement Plant Park
Photo by masck
The Braj Binani Group with a history of138 successful years is a well-diversified industrial house working actively in the core sectors of Cement, Zinc, Glass Fibre and Downstream Composite Products. Binani Cement is growing stronger and stronger and it’s reflected in the financial results as well. Mr. Vinod Juneja, Deputy Managing Director, Binani said,  “Binani Cement has keenly invested in a running virgin cement plant in China.

Now Binani cement which is the flagship company of the Binani Group — is crawling into commercial real estate development. The Binani group is planning to invade the realty sector even. The purpose behind this seems to cash in on its idle land bank and to reduce dependence on the cyclical nature of the cement business.

The Binani group has committed to develop an information technology park. This project will be done with a partner on 56 acres of land it has in Thane near Mumbai. The construction of the project is proposed to get started in a few months and is suppose to complete by next year.

The company’s managing director Vinod Juneja told ET that the company is “exploring many options including a joint venture”. He did not divulge any more details. The over supply of capacities by year-end — cement capacity is likely to go up by 50 mt from 240 mt some Cement analysts said. This will put pressure on prices leading to partial erosion of profitability. “This is why cement players are diversifying and looking for newer markets,” said an analyst.

The current price of Rs 75.60 discounts the company’s Q3 December 2009 annualized EPS of Rs 11.26, by a PE multiple of 6.71. A mid-cap cement maker has an equity capital of Rs 203.10 crore. Face value per share is Rs 10.

Binani Cement’s net profit surged 573.4% to Rs 57.17 crore on a 11.7% rise in sales to Rs 402.33 crore in Q3 Dec 2009 over Q3 Dec 2008.

Binani Cement which is engaged in manufacturing and marketing cement and non-ferrous metal is looking for newer markets. Since the stock had underperformed the market over the past one month till 9 March 2010, gaining 0.69% compared with the Sensex’s 6.30% rise. It outperformed the market in past one quarter, rising 8.72% as against 0.42% decline in the Sensex.

CCCL Offers Paradise Living

In modern world of opportunity, there is new breed of royalty, who breed in style that exudes royal blooded class. But all it takes to be royal is nThe Arch Hong Kong residential towerot a silver spoon but just a royal perspective and surely there is no compromise when it comes to lifestyle living. Then how about a 31-storey sky rise residential tower with Udupi, the temple town known for its eternal charm and ethnicity as its landmark? Royal embassy in Manipal symbolizes the life style of neo-stylists. Manipal which has already found a place in the map of India as a bustling educational and health care hub will have Royal Embassy to add to its charm.

This project is soon to start after the concerned authorities will obtain a no objection certificate. This project is commissioned to India’s second largest construction company Consolidated Construction Consortium Limited (CCCL) by M M Builders. CCCL has done prestigious and challenging projects all over the country and earned a unparalleled reputation.

Planned to be one of the tallest buildings and including Manipal’s first shopping mall it will be spread over 3.38 acres of land just behind the MAHE library. This so royal ROYAL EMBASSY will house 402 apartments of two, three and four bedrooms and is designed in such a way about 70% of the building will be able to get sea view. Launched in January, 2009 it is progressing at a brisk pace as per plan and the project is expected to be completed by December 2012. The micro level detailing of the project involving the best team of architects, structural consultants, electrical consultants, plumbing and fire safety consultant and pollution and environment consultants is kept under consideration by promoters.

The team of Simons architects say, “Lot of care has gone into the micro level detailing of the project.  It would be a model to achieve remarkable safety standards and one of the best ever conceived projects on this soil”. Sripeksha Engineering Consultants, Bangalore have proposed an excellent lighting design scheme for the project. Apart from all this the Cascade Consultants have come up with a perfectly foolproof smoke detection and firefighting system, plumbing and sanitary work.

A full proof round the clock security system is been given the top priority for the safety of residents. Amenities includes a grand entrance lobby with visitors waiting lounge, swimming pool & baby pool with filtration plant and  changing rooms, 6 high speed lifts with auto doors, children’s play area both outdoor and indoor, joggers track, power back up for 24 hours for lifts. Utmost priority is also given to address environmental concerns by proposing modern MBR technology Effluent Treatment Plant, Rain Water Harvesting system and solid waste management system

With the promoters paying attention to even the minutest details and involving the best people in business Royal Embassy is sure to emerge as the crowning glory giving a new dimension to the real-estate scenario in this part of the coastal belt.

the related information will soon be available on

New released projects concentrate on affordable housing.

Real Estate = Big Money
Photo by thinkpanama
A week after the budget is announced, it has turned up to be a matter of concern for the Realty companies. Imposition of a service tax of  10% on the cost of construction hand in hand with a hike in interest rates by 0.25-0.5% the industry is looking forward to some different methods to attract the customers.

As the real estate in striving to come out of the recession scenario many realty companies are coming up with fascinating projects and plans concentrating on almost all class of people. Believing the words of Union Minister for Housing and Urban Poverty Alleviation and Tourism Kumari Selja, the industry is now looking at construction of affordable housing as the next alternative.

Some major realty companies like Life Insurance Corporation of India (LIC) would undertake realty projects, both commercial and residential, across the country. Jaipur Development Authority (JDA) has come up with a new residential scheme Swarn Vihar’ near Muhana.A prick in the real estate boom, sky high land prices and a keen need to conserve cash are forcing some real estate companies to do joint development deals with landowners rather than splurge money in buying and holding land at expensive rates.

A prolific view over the new projects launched says that the JDA runs over an area span of 52.64 hectares. This scheme is finally to be launched on Friday and the expectations are to come up with the highest reserve price demanded by the development authority. The total reserved price decided by JDA is Rs 6,200 per sq mt for the new scheme. Keeping in mind the low income group it has decided to provide a relaxation on the contrary the people with high income will not be spared with the payment of additional percentage over the reserved price. The scheme is located at an urbanized area of Mansarovar well connected to the city.

Similarly concentrating on the “affordable housing theme” the ministry is urging states and private sector to gestate models providing more affordable housing as emphasized by Selja. LIC which was at a premium income of Rs 1,76,000 crore during the current fiscal, now aims at 18 per cent to 19 per cent growth in the next fiscal. The sources say that LIC will be investing Rs 2 lakh crore in the current fiscal, with the infrastructure projects sharing 15% of it.

Apart from attracting low income holders Bangalore-based developers, such as Puravankara, Nitesh Estates, Brigade Prestige and Mumbai-based Godrej Properties are adopting the joint development route to develop properties, being aware of the immediate need to save cash in a market that is becoming increasingly tight-fisted for real estate firms.