A deal struck last week between one of India’s biggest builders Lodha, its key investor Deutsche Bank and an old associate has paved the way for the realty group to move ahead with the planned initial public offering by its flagship, Lodha Developers.
The deal settles a complicated, pending litigation, which Lodha Developers will now not be required to disclose in the draft red herring prospectus it plans to file this week. It also spares the company from mentioning that there has been a delay in interest payment to Deutsche.
But more interestingly, the agreement reaffirms Deutsche Banks’ right under which, in the event of a default the German bank can take absolute control of the main Lodha subsidiary which owns most of the group’s projects.
This right was questioned by one Vilas Samant, who had earlier dealings with Lodhas. Samant had moved the Company Law Board, seeking to assert his alleged right over 200 shares held by his father in Cowtown Land Development, the concerned Lodha group subsidiary. Deutsche had invested Rs 1,640 crore — the single biggest FDI in the real estate sector — by subscribing to fully convertible debentures issued by Cowtown. These debentures carry an interest, and if Cowtown fails to pay it, Deutsche can convert the debentures to get a 99% stake in Cowtown and other entities floated by Cowtown.
Even though the CLB order was challenged by Deutsche at the Mumbai High Court, the litigations made it difficult for Deutsche to effect a possible conversion of the debentures into shares. This roadblock has now been cleared. Deutsche has also agreed to restructure the terms to give Lodhas more time to make the interest payment.
When contacted by ET, a Lodha spokesperson said, “On Thursday Vilas Samant agreed to withdraw all his claims against Cowtown land Development Pvt Ltd and consent terms were filed to the said effect. This validates Cowtown’s contention that there was no valid claim by Vilas Samant.” The Deutsche spokesperson in India said the bank has nothing to comment on the matter.
Sources said that as part of the new terms, Lodhas has agreed to mortgage two more properties at Walkeshwar, a tony address in South Mumbai, in favour of an institutional trustee which has a back-to-back arrangement with Deutsche. Responding to this, the Lodha spokesperson said, “...the company creates mortgage in favour of various lenders as part of general business practice. However, the arrangement with Deutsche Bank is an unsecured arrangement and hence there is no mortgage created in favour of Deutsche Bank.”
The pivotal aspect of the Lodha group structure is the presence of Deutsche Bank as an investor. While Deutsche subscribed to convertible debentures of Cowtown, the latter in turn reinvested a substantial part of the money by subscribing partly and optionally convertible securities issued by other Lodha group companies. Even though the proposed IPO is being planned by Lodha Developers, the bulk of the group’s projects and land assets are with Cowtown and its subsidiaries. And if Cowtown were by any chance to default, Lodha Developers would lose control of the assets.
It’s in this context that Vilas Samant’s decision to move the CLB had assumed a sudden importance. Mr Samant curiously moved the CLB just weeks before Cowtown was supposed to make an interest payment to Deutsche. The CLB order had put a question mark on the very investment terms between Deutsche Bank and Cowtown. The deal entered into last week puts to an end this uncertainty for Deutsche, which in turn has endorsed Lodha Developers decision to go for an IPO.
Courtesy:- ET dt:- 29-09-09
Wednesday, September 30, 2009
DEVYANI PLANS TO SET UP RESTAURANTS UNDER OWN BRAND
Devyani International, Indian franchisee for global chains Pizza Hut, KFC and Costa Coffee, is setting up its own branded restaurant chains across the country and food outlets at airports.
The Rs 250-crore company is planning three restaurant chains under its own brands— Southern Spirit, Curry Republic and Oriental Cuisine—that will serve south Indian, north Indian and Chinese cuisine, respectively.
“The portfolio expansion from serving international cuisine to local food is aimed at broadcasting our business,” said Raj Gandhi, president and group CFO of holding company RJ Corp.
The company recently signed a 60: 40 joint venture with airport operator GMR to set up food outlets at Delhi airport’s international terminal.
The Ravi Jaipuriaowned group is also the biggest bottler of PepsiCo beverages and owns Cream Bell ice-cream.
Devyani has gained sufficient expertise in running food joints after the company set up the first franchisee outlet in January 1997 for Pizza Hut. The company now wants to test waters with its own brands, beginning with Southern Spirit.
“The plan is to set up 100 Southern Spirit restaurants over 4-5 years, starting with the national capital region. Our focus initially will be on Southern Spirit,” said Virag Joshi, CEO of Devyani International, which plans to invest Rs 300 crore across all its brands in the next five years.
These restaurants have been targeted at the mass market, which makes Devyani confident of turning in profits soon. “We feel the timing is right. Beverages sales are at a high, as is the case with PepsiCo. Overall, the economy is on the verge of a recovery,” Mr Gandhi said.
The increasing air travel by Indians presents a lucrative business opportunity at the airports that hasn’t gone unnoticed by Devyani. Even before signing the joint venture with GMR for food outlets at the Delhi international airport, the multi-restaurant chain set up a food court at Delhi airport’s domestic terminal 1D. It will soon open a 24-hour bar at domestic terminal 1C. The food court serves all the group’s brands: Pizza Hut, KFC and Costa Coffee specialties, Pepsi-Co beverages and Cream Bell ice-cream.
“The food court is being run as a single entity and serves a combination of our locally-created brands and international ones for which we are the franchisees. We will replicate this model at other airports, malls and other institutional areas,” Mr Gandhi said.
The company has also bid for similar food courts at Jaipur, Amritsar and Chandigarh airports.
Courtesy:- ET dt:- 29-09-09
The Rs 250-crore company is planning three restaurant chains under its own brands— Southern Spirit, Curry Republic and Oriental Cuisine—that will serve south Indian, north Indian and Chinese cuisine, respectively.
“The portfolio expansion from serving international cuisine to local food is aimed at broadcasting our business,” said Raj Gandhi, president and group CFO of holding company RJ Corp.
The company recently signed a 60: 40 joint venture with airport operator GMR to set up food outlets at Delhi airport’s international terminal.
The Ravi Jaipuriaowned group is also the biggest bottler of PepsiCo beverages and owns Cream Bell ice-cream.
Devyani has gained sufficient expertise in running food joints after the company set up the first franchisee outlet in January 1997 for Pizza Hut. The company now wants to test waters with its own brands, beginning with Southern Spirit.
“The plan is to set up 100 Southern Spirit restaurants over 4-5 years, starting with the national capital region. Our focus initially will be on Southern Spirit,” said Virag Joshi, CEO of Devyani International, which plans to invest Rs 300 crore across all its brands in the next five years.
These restaurants have been targeted at the mass market, which makes Devyani confident of turning in profits soon. “We feel the timing is right. Beverages sales are at a high, as is the case with PepsiCo. Overall, the economy is on the verge of a recovery,” Mr Gandhi said.
The increasing air travel by Indians presents a lucrative business opportunity at the airports that hasn’t gone unnoticed by Devyani. Even before signing the joint venture with GMR for food outlets at the Delhi international airport, the multi-restaurant chain set up a food court at Delhi airport’s domestic terminal 1D. It will soon open a 24-hour bar at domestic terminal 1C. The food court serves all the group’s brands: Pizza Hut, KFC and Costa Coffee specialties, Pepsi-Co beverages and Cream Bell ice-cream.
“The food court is being run as a single entity and serves a combination of our locally-created brands and international ones for which we are the franchisees. We will replicate this model at other airports, malls and other institutional areas,” Mr Gandhi said.
The company has also bid for similar food courts at Jaipur, Amritsar and Chandigarh airports.
Courtesy:- ET dt:- 29-09-09
Saturday, September 26, 2009
PURI VIP FLOORS FARIDABAD
PURI VIP FLOORS, Faridabad has been developed by Puri Constructions. It is a fantastic opportunity as plot prices just 200 meters away are @Rs50000/sq yds. These are lowrise apartments. People living with their old parents will prefer these lowrise spacious floors. Other specifications are – location unmatched, 400 meters from Faridabad’s most exclusive sector 14 & 15, 1.5 km from Mathura Road, 15 minutes drive from Apollo Hospital, 5 minutes drive from Metro and Noida Expressway, 54 acres notified IT SEZ in the vicinity, 55 acres gated community, 24x7 security, 24 hrs water supply, extensive landscaping, Terrace right for 2nd floor and front & back lawns for ground floor.
Puri Constructions has been in construction business for more than three decades. The company has executed landmark projects within record time. From large scale steel plants and dams to luxury hotels, from state owned institutions to new age commercial and residential projects, Puri Constructions has always been associated with supreme quality. Since its inception Puri Constructions has built its reputation for values, standards, ethos and transparency in all spheres of conduction business. Puri Constructions is an ISO – 9001-2000 real estate company. It is also a Patron member of NAREDCO.
We, Shri Aditya Estate, are one of the leading real estate consultants, established in Delhi and working successfully for more than a decade. We have developed well-embellished websites viz. www.zameen-zaidad.com, www.propertycafeteria.com with a clear concept to showcase all kinds of properties of our patrons for wider publicity of their products for sale/purchase, leasing and renting purposes. Our website – www.zameen-zaidad.com - is displaying the details of project of Puri VIP Floors Faridabad. Homes for sale are available in Puri VIP Floors. For best and transparent deals for apartments in Puri VIP Floors, our experienced marketing executives can be contacted at mob no 91-9650398925, 9810445860, 9911158601, 011-42470622 or email at : info@zameen-zaidad.com. Our company is on the approved list of leading banks/financial institutions for grant of home loans. We have got an experienced team to process home loan applications. For hassle-free home loans for apartments in Puri VIP Floors Faridabad, our executives can be contacted at mobile no 91-9990217028, 9810445860, 011-47082736 or email at : info@zameen-zaidad.com
Puri Constructions has been in construction business for more than three decades. The company has executed landmark projects within record time. From large scale steel plants and dams to luxury hotels, from state owned institutions to new age commercial and residential projects, Puri Constructions has always been associated with supreme quality. Since its inception Puri Constructions has built its reputation for values, standards, ethos and transparency in all spheres of conduction business. Puri Constructions is an ISO – 9001-2000 real estate company. It is also a Patron member of NAREDCO.
We, Shri Aditya Estate, are one of the leading real estate consultants, established in Delhi and working successfully for more than a decade. We have developed well-embellished websites viz. www.zameen-zaidad.com, www.propertycafeteria.com with a clear concept to showcase all kinds of properties of our patrons for wider publicity of their products for sale/purchase, leasing and renting purposes. Our website – www.zameen-zaidad.com - is displaying the details of project of Puri VIP Floors Faridabad. Homes for sale are available in Puri VIP Floors. For best and transparent deals for apartments in Puri VIP Floors, our experienced marketing executives can be contacted at mob no 91-9650398925, 9810445860, 9911158601, 011-42470622 or email at : info@zameen-zaidad.com. Our company is on the approved list of leading banks/financial institutions for grant of home loans. We have got an experienced team to process home loan applications. For hassle-free home loans for apartments in Puri VIP Floors Faridabad, our executives can be contacted at mobile no 91-9990217028, 9810445860, 011-47082736 or email at : info@zameen-zaidad.com
REALTY PLAYERS HIT THE HIRING LANE AGAIN
REALTY PLAYERS HIT THE HIRING LANE AGAIN
Some of the country’s largest real estate developers such as DLF, Unitech and HDIL have started hiring again, as they look to launch new projects and speed up execution of existing ones to cash in on a pickup in home demand, reports Sanjeev Choudhary from New Delhi. “We are launching new projects and plan to hire in large numbers,“ said a spokesman for DLF, India’s largest real estate firm that fired more than 300 people during the downturn. Unitech, which has 1,200 people on its rolls, has added 300 employees at different levels in the past few months. Its project sites, where construction had stopped for lack of funds last year, are again humming with activity, a company spokesman said.
Real Estate Cos Start Hiring Amid Signs of Revival
Some of the country’s largest real estate developers such as DLF, Unitech and HDIL have started hiring again, as they look to launch new projects and speed up execution of existing ones to cash in on a pickup in home demand.
“We are launching new projects and plan to hire in large numbers, “said a spokesman for DLF, India’s largest real estate firm that fired more than 300 people during the downturn.
He said the company hired people with specific skills such as mall management even during the crisis. DLF on Tuesday launched a project in Delhi and sold the entire stock of 1,250 apartments in two hours, he said.
The companies expect high demand in the coming fiscal quarters with the economy showing clear signs of a revival in the fiscal year started April 2009. The financial year ended March 2009 recorded 6.7% growth after two bad quarters pulled down annual growth rate from 9% plus levels seen in the previous three years.
Unitech, India’s second-largest property firm that struggled for months to avoid bankruptcy is back in action with two rounds of share sale and a revamped business model. The company, which has 1,200 people on its rolls, has added 300 employees at different levels in the past few months. Its project sites, where construction had stopped for lack of funds last year, are again humming with activity, a company spokesman said.
Unitech had raised $900 million through two rounds of stake sale to qualified institutional buyers to bring down its debt level, which was hovering around Rs 10,000 crore last year. The company also changed its business model and launched homes in the ‘affordable’ category and hired more people to sell directly to customers.
A revival in demand has prompted more firms such as Omaxe, Lodha, Ansal and Gera Developers to launch new projects, while some others like Parsvnath Developers and Prestige group are still playing it safe.
Rohtas Goel, chairman of Delhi based Omaxe, said he hired around 70 people, almost the same number the company had fired last year.
“Much of the hiring will happen at mid-level and in sales and project management. These are the categories where maximum jobs were lost,” said Vivek Gandhi, senior vice-president with Delhi-based Ansal Properties and Infrastructure (API), which plans to hire at least 200 people in three months. He expects salaries to remain at levels marginally lower than those during the peak of boom in 2007.
The years between 2004 and 2007 saw Indian property market booming with hundreds of new projects being launched and property prices going up several folds. The boom and the resultant scramble for talent saw salaries in the sector shooting up.
But a property slump, which started as a result of extremely high property prices and high interest rates early last year, deepened due to the impact of the global recession. This saw companies shelving several projects resulting in mass job losses at several property firms.
“We offered an average 10% salary hike to our staff. The new people too are joining us on a scale similar to our old staff,” said Abhisheck Lodha, director with Lodha group that has hired 80 employees since August. The company, which has a 1300-strong workforce, plans to add 350 more in a year.
Another leading Mumbai-based developer HDIL is also hiring. “We require additional manpower as we are speeding up on execution of existing projects and planning to launch more,” said Sarang Wadhawan, managing director of the company.
However, a few other players such as Delhi-based Parsvnath Developers and Bangalore-based Prestige group are moving cautiously. “We didn’t fire people in the first place and so don’t immediately need to hire new people,” said Prestige group director Uzma Irfan.
Courtesy:- ET dt:- 24-09-09
Some of the country’s largest real estate developers such as DLF, Unitech and HDIL have started hiring again, as they look to launch new projects and speed up execution of existing ones to cash in on a pickup in home demand, reports Sanjeev Choudhary from New Delhi. “We are launching new projects and plan to hire in large numbers,“ said a spokesman for DLF, India’s largest real estate firm that fired more than 300 people during the downturn. Unitech, which has 1,200 people on its rolls, has added 300 employees at different levels in the past few months. Its project sites, where construction had stopped for lack of funds last year, are again humming with activity, a company spokesman said.
Real Estate Cos Start Hiring Amid Signs of Revival
Some of the country’s largest real estate developers such as DLF, Unitech and HDIL have started hiring again, as they look to launch new projects and speed up execution of existing ones to cash in on a pickup in home demand.
“We are launching new projects and plan to hire in large numbers, “said a spokesman for DLF, India’s largest real estate firm that fired more than 300 people during the downturn.
He said the company hired people with specific skills such as mall management even during the crisis. DLF on Tuesday launched a project in Delhi and sold the entire stock of 1,250 apartments in two hours, he said.
The companies expect high demand in the coming fiscal quarters with the economy showing clear signs of a revival in the fiscal year started April 2009. The financial year ended March 2009 recorded 6.7% growth after two bad quarters pulled down annual growth rate from 9% plus levels seen in the previous three years.
Unitech, India’s second-largest property firm that struggled for months to avoid bankruptcy is back in action with two rounds of share sale and a revamped business model. The company, which has 1,200 people on its rolls, has added 300 employees at different levels in the past few months. Its project sites, where construction had stopped for lack of funds last year, are again humming with activity, a company spokesman said.
Unitech had raised $900 million through two rounds of stake sale to qualified institutional buyers to bring down its debt level, which was hovering around Rs 10,000 crore last year. The company also changed its business model and launched homes in the ‘affordable’ category and hired more people to sell directly to customers.
A revival in demand has prompted more firms such as Omaxe, Lodha, Ansal and Gera Developers to launch new projects, while some others like Parsvnath Developers and Prestige group are still playing it safe.
Rohtas Goel, chairman of Delhi based Omaxe, said he hired around 70 people, almost the same number the company had fired last year.
“Much of the hiring will happen at mid-level and in sales and project management. These are the categories where maximum jobs were lost,” said Vivek Gandhi, senior vice-president with Delhi-based Ansal Properties and Infrastructure (API), which plans to hire at least 200 people in three months. He expects salaries to remain at levels marginally lower than those during the peak of boom in 2007.
The years between 2004 and 2007 saw Indian property market booming with hundreds of new projects being launched and property prices going up several folds. The boom and the resultant scramble for talent saw salaries in the sector shooting up.
But a property slump, which started as a result of extremely high property prices and high interest rates early last year, deepened due to the impact of the global recession. This saw companies shelving several projects resulting in mass job losses at several property firms.
“We offered an average 10% salary hike to our staff. The new people too are joining us on a scale similar to our old staff,” said Abhisheck Lodha, director with Lodha group that has hired 80 employees since August. The company, which has a 1300-strong workforce, plans to add 350 more in a year.
Another leading Mumbai-based developer HDIL is also hiring. “We require additional manpower as we are speeding up on execution of existing projects and planning to launch more,” said Sarang Wadhawan, managing director of the company.
However, a few other players such as Delhi-based Parsvnath Developers and Bangalore-based Prestige group are moving cautiously. “We didn’t fire people in the first place and so don’t immediately need to hire new people,” said Prestige group director Uzma Irfan.
Courtesy:- ET dt:- 24-09-09
Tuesday, September 22, 2009
GODREJ TO FREE PRIME LAND FOR REALTY VENTURE
To Develop 10 lakh sqft In Delhi, Bangalore, Mumbai & Mohali
The $2.5-billion Godrej Group has embarked on a strategy aimed at leveraging its strength in three verticals — consumer products, property development and foods. Its property division, which is poised for an IPO by year-end, is trying to cash in on the affordable housing segment.
By moving its manufacturing facilities from prime business locations to Himachal Pradesh and the North East, the group is gearing up to use the now available land banks for property development, its chairman Adi Godrej told reporters here on Friday.
The vacated space would be used to develop both residential and commercial properties. It is developing around 10 lakh sqft in these two segments which are coming up in places like Delhi, Bangalore, Mumbai and Mohali. Mr Godrej said Chennai too was on its radar, where the group is seriously evaluating the joint development route.
Anticipating a 20 to 25% growth year on year for his company, Mr Godrej said the group is confident of doubling its turnover every three to four years.
During the last two years, the group has already started re-organizing its business by consolidating some of its businesses and acquisitions. He also sounded upbeat about the economy showing rapid recovery signs.
The Godrej group is also looking at making deeper inroads into the rural market by using technology and introduction of new products in the consumer durable space. It is test-marketing a Rs 3,500 refrigerator (45 l) which would operate on pettier technology compared to the regular compressor. This fridge is capable of keeping products cool though it cannot make ice cubes. The initiative is the second test marketing venture for the product, Mr Godrej said.
Courtesy:- ET dt:- 19-09-2009
The $2.5-billion Godrej Group has embarked on a strategy aimed at leveraging its strength in three verticals — consumer products, property development and foods. Its property division, which is poised for an IPO by year-end, is trying to cash in on the affordable housing segment.
By moving its manufacturing facilities from prime business locations to Himachal Pradesh and the North East, the group is gearing up to use the now available land banks for property development, its chairman Adi Godrej told reporters here on Friday.
The vacated space would be used to develop both residential and commercial properties. It is developing around 10 lakh sqft in these two segments which are coming up in places like Delhi, Bangalore, Mumbai and Mohali. Mr Godrej said Chennai too was on its radar, where the group is seriously evaluating the joint development route.
Anticipating a 20 to 25% growth year on year for his company, Mr Godrej said the group is confident of doubling its turnover every three to four years.
During the last two years, the group has already started re-organizing its business by consolidating some of its businesses and acquisitions. He also sounded upbeat about the economy showing rapid recovery signs.
The Godrej group is also looking at making deeper inroads into the rural market by using technology and introduction of new products in the consumer durable space. It is test-marketing a Rs 3,500 refrigerator (45 l) which would operate on pettier technology compared to the regular compressor. This fridge is capable of keeping products cool though it cannot make ice cubes. The initiative is the second test marketing venture for the product, Mr Godrej said.
Courtesy:- ET dt:- 19-09-2009
NOW, HOTELS CAN GET LOANS AT LOWER RATES
In a bid to encourage investment in the hospitality sector, the RBI recently notified that hotels be taken out of the high risk category of real estate exposure. This will ensure that banks will give loans to companies at a lower interest rate.
The tourism ministry has been pushing for incentivizing the hospitality industry. A ministry statement said, ‘‘RBI has notified that hotels be taken out of the real estate exposure for banks to those entrepreneurs who themselves run these ventures. This new incentive would enable hotels to avail larger credits at better interest rates, which would help to lower the overall cost of such hotel projects.’’
The tourism ministry had taken up with the finance ministry and the RBI earlier this year to accord infrastructure status to hotel projects and provide fiscal amenities for creation of additional hotel room capacity to meet the surge in demand in the sector.
The hotel segment of the tourism industry is highly capital intensive in nature and has a long gestation period. India is facing a shortage of good quality accommodation for both international as well as domestic tourists.
Courtesy:- TOI dt:- 16-09-09
The tourism ministry has been pushing for incentivizing the hospitality industry. A ministry statement said, ‘‘RBI has notified that hotels be taken out of the real estate exposure for banks to those entrepreneurs who themselves run these ventures. This new incentive would enable hotels to avail larger credits at better interest rates, which would help to lower the overall cost of such hotel projects.’’
The tourism ministry had taken up with the finance ministry and the RBI earlier this year to accord infrastructure status to hotel projects and provide fiscal amenities for creation of additional hotel room capacity to meet the surge in demand in the sector.
The hotel segment of the tourism industry is highly capital intensive in nature and has a long gestation period. India is facing a shortage of good quality accommodation for both international as well as domestic tourists.
Courtesy:- TOI dt:- 16-09-09
LUXURIOUS APARTMENTS AT EAST OF DELHI
Max City Developers brings to you state of-the-art architectural and engineering excellence called "Park Sapphire". Strategically located, just 2 km east of Delhi (Anand Vihar) in an integrated township spread over 100 acres of Ramprastha Greens in the very heart of Vaishali, the project has three high-rise 15-storey towers with luxurious two and three bedroom apartments and penthouses. The construction is in full swing with December 2010 the project completion time.
Courtesy:- HT Estates dt:- 19-09-09
Courtesy:- HT Estates dt:- 19-09-09
EARLY SIGNS OF STABILITY
Residential markets are stabilizing in major parts of the country, while residential rentals are seeing corrections, says a report
The second quarter (April-June) of 2009 brought some stability in the residential markets across the major cities of India. Markets such as NCR, Kolkata, Chennai and Hyderabad remained largely stable while some micro markets in Mumbai registered marginal growth, says a report by Cushman & Wakefield.
The residential rental market on the other hand saw some correction in cities like Bangalore, Pune, Hyderabad as well as NCR, of which Bangalore witnessed the maximum drop in values ranging from 2-24 per cent across categories and locations. Hyderabad Kolkata and NCR witnessed marginal correction in rental values with a few micro markets also holding steady during the period. Mumbai and Chennai residential rental markets remained stable over the previous quarter.
Positive steps by the government in controlling lending rates, subsidies for low cost and affordable housing sector and general economic stability has led to a slow but steady revival of demand in the residential sector, especially from the end-user sector. With residential values eroded to levels as existed three-four years ago, most end-users have been viewing this as their best opportunity to enter the market. The developers' focus on 'affordable' or low-cost housing, too, is attracting the end-users.
However, there is still apprehension in terms of whether developers would be able to complete projects on time. Thus, only reputed developers have actually been able to take advantage of this development. In the interim, the secondary sales market has seen heightened activities where current owners are able to command reasonable prices, the report says.
Mumbai residential has seen a spike in demand as a result of which capital values have seen stability. There has been a rise in demand in the mid range segment, especially in the suburban locations, which has led to an increase in values in these locations. The high-end market has registered marginal correction however; it was not very profound as in the previous quarters.
Supply for new ready-to-move-in apartments has been constrained due to slowdown in construction activities while there is an improvement in demand.
The residential markets in NCR are likely to be at the trough with minor price adjustments anticipated in the short term. Renewed interests from end-users have been witnessed with the launch of several projects catering to the affordable segment in the suburban locations. Capital values are, however, likely to remain stable in the short term due to improved sentiment.
In Chennai, the capital values for the residential properties in the key residential locations have stabilized over the past few months.
This is mainly due to the launch of various projects by leading developers by offering discounted prices along with the regional players who have come up with several projects within the city limits. However, high-end developments in Boat Club and Poes Garden have proved to be exceptions in Chennai registering a minor correction in the range of 5-6 per cent. These locations are likely to correct further in the short term.
The property prices in Kolkata residential market across all categories exhibited no major fluctuations during July 2009.
High end segment in Ballygunge, Queens Park, Rainy Park, Gurusday Road, Alipore Park Rd, Ashoka Road, Belvedere Road and EM Bypass have already attained significant corrections. The market recorded interest from end-user driven segment in anticipation of a spurt in the property prices in the near future.
Courtesy:- HT Estates dt:- 19-09-09
The second quarter (April-June) of 2009 brought some stability in the residential markets across the major cities of India. Markets such as NCR, Kolkata, Chennai and Hyderabad remained largely stable while some micro markets in Mumbai registered marginal growth, says a report by Cushman & Wakefield.
The residential rental market on the other hand saw some correction in cities like Bangalore, Pune, Hyderabad as well as NCR, of which Bangalore witnessed the maximum drop in values ranging from 2-24 per cent across categories and locations. Hyderabad Kolkata and NCR witnessed marginal correction in rental values with a few micro markets also holding steady during the period. Mumbai and Chennai residential rental markets remained stable over the previous quarter.
Positive steps by the government in controlling lending rates, subsidies for low cost and affordable housing sector and general economic stability has led to a slow but steady revival of demand in the residential sector, especially from the end-user sector. With residential values eroded to levels as existed three-four years ago, most end-users have been viewing this as their best opportunity to enter the market. The developers' focus on 'affordable' or low-cost housing, too, is attracting the end-users.
However, there is still apprehension in terms of whether developers would be able to complete projects on time. Thus, only reputed developers have actually been able to take advantage of this development. In the interim, the secondary sales market has seen heightened activities where current owners are able to command reasonable prices, the report says.
Mumbai residential has seen a spike in demand as a result of which capital values have seen stability. There has been a rise in demand in the mid range segment, especially in the suburban locations, which has led to an increase in values in these locations. The high-end market has registered marginal correction however; it was not very profound as in the previous quarters.
Supply for new ready-to-move-in apartments has been constrained due to slowdown in construction activities while there is an improvement in demand.
The residential markets in NCR are likely to be at the trough with minor price adjustments anticipated in the short term. Renewed interests from end-users have been witnessed with the launch of several projects catering to the affordable segment in the suburban locations. Capital values are, however, likely to remain stable in the short term due to improved sentiment.
In Chennai, the capital values for the residential properties in the key residential locations have stabilized over the past few months.
This is mainly due to the launch of various projects by leading developers by offering discounted prices along with the regional players who have come up with several projects within the city limits. However, high-end developments in Boat Club and Poes Garden have proved to be exceptions in Chennai registering a minor correction in the range of 5-6 per cent. These locations are likely to correct further in the short term.
The property prices in Kolkata residential market across all categories exhibited no major fluctuations during July 2009.
High end segment in Ballygunge, Queens Park, Rainy Park, Gurusday Road, Alipore Park Rd, Ashoka Road, Belvedere Road and EM Bypass have already attained significant corrections. The market recorded interest from end-user driven segment in anticipation of a spurt in the property prices in the near future.
Courtesy:- HT Estates dt:- 19-09-09
Friday, September 18, 2009
NEW LAUNCHES OF UNITECH THE VILLA- GURGAON
Project Name The Villa
Name of Builder Unitech Ltd.
Project Type Villas
Price As below
Location Sector - 33 & 48, Sohna road, Gurgaon
Agent Shri Aditya Estates
42470622, 9810445860
Home Specifications
Universal
Structure Earthquake resistant structure
Flooring of Flats
Living/Dining Marble
Bed Rooms Laminated wooden flooring
Domestic Help Room Ceramic tiles
Kitchen & Toilets Ceramic tiles
Lobby/Lounge Marble
Balconies & Terrace Ceramic tiles
Staircase Stone/wood
Wall Finish
Internal Choice of acylic emulsion on PoP base, ceilings in oil bound distemper
Domestic Help Room Oil bound distemper
External Texture paint finish and accent stone cladding; painted steel trellis; slate/mangalore roof tiles for sloping roofs
Kitchen
Dado Ceramic tiles till 600mm height above counter level on all walls in villas
Fittings Working platform surface in granite with recessed double bowl sink and drainer in villas
Toilets
Dado Select Ceramic tile upto ceiling
Fittings White sanitary fixtures, single lever CP fittings, 5 fixtures bathrooms for master bedroom. Other bedrooms with 3/4 fixtures bathroom in villas
Doors
Main Entry Seasoned hardwood frames with European style moulded shutters
Internal Seasoned hardwood frames with European style moulded shutters
Ironmongery Brush stainless steel handles and latches
Windows / External Doors Powder coated/ anodised aluminium frame with glazed shutters
Balconies & Terraces
Handrail Toughened glass infill stainless steel handrail in selected area
Glass 6 mm toughened glass to enhance security
For more info log on to http://www.zameen-zaidad.com/
Name of Builder Unitech Ltd.
Project Type Villas
Price As below
Location Sector - 33 & 48, Sohna road, Gurgaon
Agent Shri Aditya Estates
42470622, 9810445860
Home Specifications
Universal
Structure Earthquake resistant structure
Flooring of Flats
Living/Dining Marble
Bed Rooms Laminated wooden flooring
Domestic Help Room Ceramic tiles
Kitchen & Toilets Ceramic tiles
Lobby/Lounge Marble
Balconies & Terrace Ceramic tiles
Staircase Stone/wood
Wall Finish
Internal Choice of acylic emulsion on PoP base, ceilings in oil bound distemper
Domestic Help Room Oil bound distemper
External Texture paint finish and accent stone cladding; painted steel trellis; slate/mangalore roof tiles for sloping roofs
Kitchen
Dado Ceramic tiles till 600mm height above counter level on all walls in villas
Fittings Working platform surface in granite with recessed double bowl sink and drainer in villas
Toilets
Dado Select Ceramic tile upto ceiling
Fittings White sanitary fixtures, single lever CP fittings, 5 fixtures bathrooms for master bedroom. Other bedrooms with 3/4 fixtures bathroom in villas
Doors
Main Entry Seasoned hardwood frames with European style moulded shutters
Internal Seasoned hardwood frames with European style moulded shutters
Ironmongery Brush stainless steel handles and latches
Windows / External Doors Powder coated/ anodised aluminium frame with glazed shutters
Balconies & Terraces
Handrail Toughened glass infill stainless steel handrail in selected area
Glass 6 mm toughened glass to enhance security
For more info log on to http://www.zameen-zaidad.com/
NEW LAUNCH OF SPAZE BUZINESS PARK- GURGAON
Project Name Spaze Buziness Park
Name of Builder Spaze Towers Pvt.Ltd.
Project Type Commercial Project.
Price As below
Location Sector-66, Gurgaon
Agents Shri Aditya Estates
42470622, 9810445860
Ground & First Floor -: Corporate Retail space
Minimum Area 0n Ground Floor Corporate Retail space is 550 sq.ft (Approx.)
With an average size of floor plates measuring 50,000 sq.ft (Approx) each.
2nd to 10th floor (approx.) -: Office space
Minimum Area 0n Commercial Offices space is 1000 sq.ft (Approx.)
With an average size of floor plates measuring 18,000 - 20,000 sq.ft. each
Price-List
Type Inaugural discount BSP Per sq.ft. Final Price
Ground Floor Rs. 260/- Per sq.ft. 6250 /- Per sq.ft. Rs. 5990 /- per.sq.ft
Office Space Rs. 200/- Per sq.ft. 4950 /- Per sq.ft. Rs. 4750 /-per.sq.ft
Payment Schedule for Office Space
On Booking Rs. 5 Lac (At the time of Booking)
Within 60 days 20 % of BSP (less amount paid at the time of registration)
On start of the Excavation work at Site 7.5 % of BSP
Name of Builder Spaze Towers Pvt.Ltd.
Project Type Commercial Project.
Price As below
Location Sector-66, Gurgaon
Agents Shri Aditya Estates
42470622, 9810445860
Ground & First Floor -: Corporate Retail space
Minimum Area 0n Ground Floor Corporate Retail space is 550 sq.ft (Approx.)
With an average size of floor plates measuring 50,000 sq.ft (Approx) each.
2nd to 10th floor (approx.) -: Office space
Minimum Area 0n Commercial Offices space is 1000 sq.ft (Approx.)
With an average size of floor plates measuring 18,000 - 20,000 sq.ft. each
Price-List
Type Inaugural discount BSP Per sq.ft. Final Price
Ground Floor Rs. 260/- Per sq.ft. 6250 /- Per sq.ft. Rs. 5990 /- per.sq.ft
Office Space Rs. 200/- Per sq.ft. 4950 /- Per sq.ft. Rs. 4750 /-per.sq.ft
Payment Schedule for Office Space
On Booking Rs. 5 Lac (At the time of Booking)
Within 60 days 20 % of BSP (less amount paid at the time of registration)
On start of the Excavation work at Site 7.5 % of BSP
Thursday, September 17, 2009
SCRIPTING REAL ESTATE RECOVERY
"These are investors who are taking an opportunistic view of the situation where prices have corrected considerably in many locations," says Sanjay Dutt, CEO business at Jones Lang LaSalle Meghraj (JLLM). He estimates that a good 40 percent of the stock sold in the last few months would have gone to investors. In Delhi-NCR, this figure might be higher at 50 percent. "Investors are back in good numbers and before the curve goes up, they want to buy. Some who have bought are already hoping to book profits during this Diwali," he adds. This could be a precursor to further improvement in investor sentiments, since investors would take this as a sign to look towards a sustainable run in the future.
Investors took flight from the residential real estate market when the market crashed last year and many have been shy of venturing back. The last few months though have seen a number of affordable launches at price points, which have stimulated the market. Most developers have launched mid come housing in the Rs 20-40 lakh range, which has created a movement. While the short-term investor is there, quite interestingly, a good number of the investors are medium to long-term investors. "These investors are flocking to real estate business because of the lack of other investment opportunities in the market at the moment," says Ajit Krishnan, partner, real estate practice at audit firm Ernst and Young who feel the trigger for these investors was the drop in price points in the residential segment in the last eight months.
Courtesy:- ET Realty dt:- 11-09-09
Investors took flight from the residential real estate market when the market crashed last year and many have been shy of venturing back. The last few months though have seen a number of affordable launches at price points, which have stimulated the market. Most developers have launched mid come housing in the Rs 20-40 lakh range, which has created a movement. While the short-term investor is there, quite interestingly, a good number of the investors are medium to long-term investors. "These investors are flocking to real estate business because of the lack of other investment opportunities in the market at the moment," says Ajit Krishnan, partner, real estate practice at audit firm Ernst and Young who feel the trigger for these investors was the drop in price points in the residential segment in the last eight months.
Courtesy:- ET Realty dt:- 11-09-09
US RECESSION IS VERY LIKELY OVER: BERNANKE
Federal Reserve chairman Ben Bernanke said on Tuesday that the US recession "is very likely over" technically but that the economy may remain weak for some time.
Bernanke said the economy is likely to show growth in the third quarter after a slump that began in late 2007. "Even though from a technical perspective, the recession is very likely over at this point, it's still going to feel like a very weak economy for some time as many people will still find that their job security and their employment status is not what they wish it was," he said. "So that's a challenge for us and policymakers going forward."
Bernanke said that there is "agreement among the forecasting community at this point that we are in a recovery," and that growth is occurring in the third quarter and will continue into 2010.
"But the general view of most forecasters is that the pace of growth in 2010 will be moderate, less than you might expect given the depth of the recession because of ongoing headwinds," he said.
Bernanke said that activity outside the regulated banking system — the so-called shadow banking system — appeared to be reviving even though that sector may be less important than before the recession. He said he saw "encouraging" signs in securitization — the repackaging of loans that are sold to investors — even in areas not supported by the Fed.
"I imagine that the shadow banking system, at least in the medium term, will not return to the size it was before," he said. "There are a lot of securitizations that have proved their viability — mostly plain-vanilla securitizations of various types, in consumer products, lending, student loans, a variety of other things.
Courtesy:- TOI dt:- 16-09-09
Bernanke said the economy is likely to show growth in the third quarter after a slump that began in late 2007. "Even though from a technical perspective, the recession is very likely over at this point, it's still going to feel like a very weak economy for some time as many people will still find that their job security and their employment status is not what they wish it was," he said. "So that's a challenge for us and policymakers going forward."
Bernanke said that there is "agreement among the forecasting community at this point that we are in a recovery," and that growth is occurring in the third quarter and will continue into 2010.
"But the general view of most forecasters is that the pace of growth in 2010 will be moderate, less than you might expect given the depth of the recession because of ongoing headwinds," he said.
Bernanke said that activity outside the regulated banking system — the so-called shadow banking system — appeared to be reviving even though that sector may be less important than before the recession. He said he saw "encouraging" signs in securitization — the repackaging of loans that are sold to investors — even in areas not supported by the Fed.
"I imagine that the shadow banking system, at least in the medium term, will not return to the size it was before," he said. "There are a lot of securitizations that have proved their viability — mostly plain-vanilla securitizations of various types, in consumer products, lending, student loans, a variety of other things.
Courtesy:- TOI dt:- 16-09-09
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