According to DTZ’s latest study ‘Global Occupancy Costs offices’, Surabaya in Indonesia and Qingdao in China were placed in the top two positions of the chart as the most affordable office locations in the world last year.

“While Tier II cities in India and China dominate the list of top 10 most affordable markets globally, Surabaya in Indonesia remains number one,” DTZ said in the report. The consultant said Hong Kong, London, Geneva, Tokyo and Zurich were the five most expensive office markets in 2011.

DTZ said Surabaya and Qingdao saw average rentals of $ 1,680 and $ 2,380 per workstation a year, respectively in 2011. Hyderabad, Chennai and Pune followed the top two places with rentals of $ 2,430, $ 2,570 and $ 2,590 a year per workstation respectively, it added.

The study showed that Hong Kong was costliest office place with an annual rental of $ 25,160 per workstation in 2011, followed by London and Geneva at $ 22,590 and $ 18,740, respectively. DTZ, however, said many cities across the world are likely to witness decline in their rentals during this year.

“Under the downside scenario, 2012 offers occupiers a window of opportunity in which to realise cost savings as rents decline… In the top five least affordable cities of Paris, Tokyo, Geneva, London and Hong Kong, office rents fall in 2012 under the euro break-up scenario,” it added. Occupiers in Rome and Milan are likely to benefit from falling occupancy costs over the next five years as sharp decreases in rents are expected in 2012 and 2013, DTZ said.

It further said office rentals in low-cost Indian cities may see double-digit falls in this year.

Unity Infraprojects stands to gain by unlocking the value in its real estate projects. It was not able to monetise any of its real estate projects due to delays in execution by over a year. However, it is now in an advanced stage of securing approvals for launching its Bangalore residential project. Unity has a total saleable area of nearly 3 million square feet in this project, which it intends to launch in another three months.

After this it will focus on monetising its real estate in other cities. The current order book of the company in its construction business stands at Rs 4,700 crore, which are 2.75 times its FY11 revenues. These orders are to be executed over the next three years. The company has been increasing its exposure to the roads segment in the last few years. Although the roads segment is highly competitive, Unity’s backward integration in terms of owns machinery has allowed the company to garner better operating margins than its peers.

In the nine months ending December 2011, the company has maintained an operating margin of 15.5%. Another factor that augurs well for the company is its strong balance sheet. As of September 2011, the company had a debt-equity ratio of 1.1, which is one of the best among its peers. Unity Infraprojects’ stock is trading at a P/E of 3.9 while similar-sized rivals like Pratibha Industries and Supreme Infrastructure India are trading at a P/E of 5.9 and 5.2, respectively. Considering its growth potential and the relative discount to its peers, the stock looks attractive at this level.

Keeping this in mind, realtors at Pune has organized Sakal Pune Property Show named as Sakal Gudi Padwa Grihotsav 2012. Across the just concluded quarter, residential prices in the outskirts of Mumbai have seen a positive slide.

With the Union Budget 2012-13 giving due consideration to the loans of affordable housing projects coupled with the positive feeling related to the festival, buyers and sellers expect to strike a great deal during this year’s Gudi Padwa. The buyers mainly constitute the New Urban Family Sector. Moreover, during this festive season, realtors juxtapose the properties with attractive discounts and freebies. But with these factors only, nobody can lure customers today. They are more oriented towards the location of the property, the pricing and the quality of construction.

The recent years were not so good for real estate sector. The ever rising inflation rates and interest rates kept the buyers at the bay. But the recent decision of the RBI to cut CRR rates gives little bit of hope to the sector.

However real estate experts suggest that the sentiments related to a festival only cannot trigger the sector. But it is decisive in getting the real estate market on the right track after a gloom. Moreover, traditionally Gudi Padwa means birth of bhoomi and bhoomi is everybody’s shelter. We can hope and look forward for bright days for real estate sector ahead with this auspicious festival.

In this exhibition, Indian developers will offer NRI investors a wide choice of properties across India which is going to start on 16^th March 2012.

The $12 billion realty market in India is on a high growth curve, because of the fast growing economy, increased participation of global players in the Indian market and new technological innovations.

According to organisers – Indus Fairs and Events (India) and Apex Business Solutions, Doha – the investment portfolio includes apartments, independent houses, bungalows, luxury villas, farmhouses, commercial properties, beach resorts and plots.

The decision got finalised in a meeting between Additional Chief Secretary (Urban Development Department) TC Benjamin and representatives of Confederation of Real Estate Developers’ Associations of India (CREDAI) from Pune, Nagpur, Kolhapur, Nashik and Aurangabad.

The government in the notification has made it mandatory to reserve 20 per cent of the land or constructed space for small-sized housing for all projects on more than 2,000 sq m land.

Benjamin said that, “The state has a dearth of such housing and this initiative will help bring about more such houses in residential projects. It will have to be implemented by the builders after April.”

Builders expressed reservations about whether the 20 per cent of the land should be reserved in the same area. However, it was decided that they could have a little farther but in the same zone. To this Benjamin added that, “They have to provide the housing with almost the same kind of infrastructure.”

The rule clearly mentions that in case of sub-division of land measuring 2,000 sq m or more, a minimum of 20 per cent will be handed over to MHADA. This would be applicable to the 26 municipal corporations and all municipal councils in the state. In order to prevent any misuse of the policy, the notification states that developers will not be allowed to amalgamate the smaller flats or land under any circumstances.

Most of the builders had reservations about having the economical housing on the same campus but later agreed to have it a little farther away from their projects.

Satish Magar, Pune CREDAI representative, who attended the meeting, said, “We are open to the policy but had some issues, which we discussed.”

“In case of the built-up space, it will be bought at the construction cost. In order to compensate the developer for the land cost, the affordable housing will be included in the floor space index computation,” said a senior official.

Vice-president of Confederation of Real Estate Developers of India (CREDAI), Rohit Gera, Pune, said the commotion in demand had prompted many builders in the city to go for new projects, which they had been avoided during the downturn. “In the last few years, unenthusiasm of builders was noticed to take up new projects. Also, many good and promising projects were on a slow pace. But now, with the market showing positive signs, builders have started to pitch in.” The construction has hiked again.

According to Gera, the realty sector in Pune had begun to catch the increasing pace as observed from October last. “People who had some plans for new homes were waiting as there was an ambiguity in the job scenario and banks were not interested to give home loans. People have started to buy properties with the industry recovering on a hike and the RBI lending support to banks, creating a rush in demand.

Demand has hiked for budget apartments along with the luxury sector. “There is a rise of at least 12-15% in the property.”

Vice-president, Estate Agents Association of Pune, Kishen C Milaney, reported that the builders had started “customising” the apartments. “Previously, developers used to offer spacious 2BHK apartments of above 13,000 sq ft that came with a higher price tag. But now, 900-950 sq ft apartments are offered at a lower price, and they are finding many takers.”

He said the demand for apartments was increasing efficiently. “The demand is not restricted to any particular area, but the city is growing in all areas.”

The overall optimism in all sectors and better job visibility among the salaried class are the reasons for the new-found boom.  An attempt made to increase in prices may decrease the demand.

The company has raised Rs 16,750 million as private equity in eight projects in November 2007.

According to sources, DLF Home Developers, the wholly-owned arm of DLF, would develop about 40,000 housing units in the mid-income category.

Despite slump in the housing demand for the last six months, the company has witnessed marvelous response for its mid-income housing projects and sold over 7,000 flats so far in the current fiscal.

DLF has unveiled mid-income housing projects in Bangalore, Gurgaon, Hyderabad, Indore, Kochi, Kolkata and Pune.

The board has also approved the fixed deposit scheme of the company for the year 2008-2009.

DS Kulkarni Developers is a real estate developer. It was incorporated on Sept. 20, 1991. The company has developed real estate projects in and around Pune and Mumbai.

Shares of the company declined Rs 4.6, or 6.79%, to end at Rs 63. The total volume of shares traded was 8,020 at the BSE (Friday).

With this, Big Bazaar, a subsidiary of the Kishore Biyani-spearheaded Pantaloon Group, will have 112 stores pan-India by November, a top company official said.

Big Bazaar is targeting a network of 145 stores by June 2009.

“We have zeroed in on several new and existing markets for the 15 stores that we plan to open by end-November. The investment will be in the range of Rs 1,500-1,600 crore,” Big Bazaar’s CEO Rajan Malhotra said in Mumbai.

The stores would be set up in places such as Mysore, Pune, Cuttack, Kolkata, Chandigarh, Agra, Faridabad, Surat, Nashik, Mumbai, Delhi and Solapur, Malhotra said, adding that in some locations two stores would be opened.

The retail chain would be extending its footprint into new markets such as Mysore, Cuttack, Chandigarh, Faridabad and Solapur. “These are new markets for us. We have done our research and expect these stores to perform well,” Malhotra said.

Presently, there are 97 Big Bazaar stores with the 98th and 99th to be opened in Mysore and Pune. “Our 100th store will be opened in Cuttack market all the three stores are likely to be set up by mid-September,” he said.

Big Bazaar wanted to mark its century by opening its 100th store in the same location where it had launched its first Kolkata, “but there were some issues and hence, we moved ahead in search of other markets,” Malhotra said.

Unitech, the country’s largest listed developer, posted a 15.7 % growth in net profit during the quarter, mainly due to higher realisations the company made in the mid-income segment housing, in the range of Rs 40-45 lakh apartments.The company posted a net profit of Rs 423.31 crore in the first quarter of financial year 2009 as compared to Rs 365.67 crore in the corresponding quarter last year. Total income went up by 17.19 per cent to Rs 1,054.37 in the first quarter of FY09 as compared with Rs 899.67 crore in the corresponding quarter last year.

DLF, which is scheduled to announce its results, also entered into affordable segment in cities such as Chennai, and Kolkata.

Bangalore-based Puravankara Projects posted 40.62% growth in year-on-year profit during the quarter due to higher realisations from the sale of apartments and income tax exemptions on its residential projects under section 80 IB. The company sold 1,000 apartments during the quarter.

The company posted a net profit of Rs 61.89 crore as compared to Rs 44.01 crore recorded in the corresponding quarter last year. The company’s revenues went up by 30.88 % at Rs 157.58 crore as compared with Rs 120.40 crore in the last financial year.

Pune-based property company Kolte Patil’s net fell nearly 7% mainly due to lifting of tax exemption on IT parks under section 80 IA. The company posted a net profit of Rs 31.46 crore in the first quarter of FY09 as compared with Rs 33.87 crore in the comparable period last year. However, the company’s revenues rose 17% at Rs 104 crore from Rs 89 crore due to higher realisation from housing projects.

Hyderabad-based IVRCL Infrastructure posted a 15 % rise during Q1 due to higher realisation from infrastructure projects, on a year-onyear basis. Net profit increased to Rs 43.50 crore from Rs 37.87 crore in the comparable period. Total sales increased by 38% at Rs 948.34 crore (Rs 688 crore).

IVR Prime Urban Developers, the group’s real estate firm, posted a 263% increase in net profit at Rs 5.44 crore during the Q1 period as against Rs 1.5 crore, while the turnover went up by 55 per cent at Rs Rs 32.25 crore.

Last week, D S Kulkarni sold 50 % in a unit setting up a SEZ in Pune to GTC Cyprus for $90 million. Ahead of the announcement, DS Kulkarni shares ended at 95.30 rupees, up 2.2 % in a strong Mumbai market.

Out of the current order book, 56% pertains to government and 44% to private sector. The current order book as on May 2008 is at Rs 30224.6 million.

In order to diversify across real estate and infrastructure development, the company has initiated real estate projects across 3 cities through a wholly owned subsidiary.
The real estate projects are across Pune, Nagpur and Goa all in JV with BSEL Infrastructure.

Going forward, the company expects continued rapid and profitable growth – targeting topline and bottomline growth of more than 40% over the next couple of years.
The order book in March 2009 is expected to grow by more than 50% over that of March 2008.

Company is increasingly focusing on bigger ticket projects. It recently bagged on road project worth Rs 250 crore.

On the foundation of frustration about Pune real estate market and desperation about housing, ‘Nanded City Pune’ developed huge hope in the minds of the property buyers.

All inclusive model of Magarpatta City will also include the middle class was the hope of the majority. Thousands of 1 bhk flats was the main attraction.

Taking advantage of this Mr. Satish Magar, Chairman and Managing Director of Magarpatta Township Development and Construction Company Limited, said “Consider ‘Nanded City Pune’ as any other real estate development project in Pune. Book your 1 bhk, 2 bhk, 3bhk flat for the quality of the construction and infrastructure support we offer”.

The Mumbai-based firm may need cash for developing a planned special economic zone in Maharashtra and townships in the future, but has enough cash for ongoing projects, Vice-Chairman Arun Nanda told analysts late on Tuesday.

The company has developed a 1,400-acre special economic zone (SEZ) in Chennai, while its second SEZ, spread over 3,000 acres at Jaipur, will start operations by July 2008.

“Chennai has started generating cash, while Jaipur is self sufficient. When we go to Maharashtra, we will need to look for funds,” he said.

The company has planned a 3,000-acre multi-product special economic zone at Karla, near Pune. While it has received approvals, land acquisition for the project may only start later this year, Nanda said.

“There is no intention for Mahindra group to dilute equity. At best, we might bring in some private equity,” Nanda told analysts. “We are a zero-debt at company level and currently hold cash reserves of 250 crores (2.5 billion rupees).”

The Mahindra group holds 51 percent equity in the company.

Last month, the company formed a joint venture with private equity fund ARCH Capital to develop a 55-acre township project, within its Chennai SEZ.

Mahindra Lifespace, which on Tuesday outlined an investment of 5 billion rupees for a 25-acre residential project in Nagpur, is also planning four other large integrated township projects. However, Nanda declined to give details of these projects.

Delhi and Mumbai hotel industries charged highest room rates in the country. Customer paid more than ten thousand for a night. Bangalore finally saw a marginal correction in room rates. Mumbai performed the best as far as hotel occupancy is concerned. While branded hotels in Mumbai registered an average occupancy of 80 percent, Delhi was at 78 percent and Kolkata at 77.4 percent.

Talking to DNA Money, Ramesh Jogani, the fund’s CEO and MD, confirmed the development but did not disclosed details.
Jogani said, “In the subsequent two years we will introduce our fourth domestic fund. We are also focusing on the retail sector.” The company has earmarked one-third of the funds for investment in retail sector.
Indiareit’s second offshore fund has previously raised $450 million from 3i Plc, which is a cornerstone investor in the fund.
ICICI Bank is the chief distributor of the offshore fund which would be closed in eight years.
Additional investors include high net worth individuals from Middle East, Singapore, Japan and Europe.
The second offshore fund is planning to raise $600-850 million through a green shoe option. The fund will have three closings, of which first closing will be on July 2008.

The main cities where the funds would be implemented are:- Mumbai , Pune, Bangalore, Chennai and Hyderabad.

Indiareit, at present, supervises funds worth $470 million, which it mopped up through its earlier two domestic and one global offerings.
About 85% of these funds have already been disbursed and rest would be deployed in the next few months.
According to a assessment report, the company’s investments have developed over two-and-a-half times during 2008.
In Pune, Indiareit had invested in Paranjape Schemes residential-cum-commercial project on eight million square feet land through a special purpose vehicle called Flagship Infrastructure Pvt Ltd. The project is expected to be ready by September 2012.