INDIAN REAL ESTATE PROPERTY NEWS

Parsvnath Developers bags redevelopment project for Mahim Bus Terminus, Mumbai

Mumbai, India, August  - Parsvnath Developers Ltd has announced that the Company has won another project from WEST, Mumbai to develop a plot of land at Mahim Bus Station, Mumbai for commercial and residential utilization along with remodeling of existing bus station.

The project would give the Company a developable area of 40,000 sq ft with a realizable value of approximately Rs 70 crore. This project is in addition to a project bagged from BEST, Mumbai for re-development into a modern bus terminus at Kurla along with modern passenger facilities and a commercial shopping complex in Mumbai.

The Mahim project would be on lease to the Company for a period of 60 years and would be executed within 24 to 25 months from the date of commencement of work.

MORE AFFORDABLE HOUSING COMING UP IN THE NEAR FUTURE

Realty major Puravankara Projects will invest Rs 8000 crore for its foray into affordable housing through its wholly owned subsidiary, Provident Housing and Infrastructure Limited.

In the first phase, the affordable housing project will cover Bangalore, Chennai, Hyderabad, Coimbatore, and Mysore where 64,500 homes with a total built-up area of 59.80 million square feet will be constructed over the next five years.

The funding for these projects will be through construction debt and customer advances amounting to Rs 6500 crore, with internal accruals and equity sourcing the remaining Rs 1500 crore which will be utilized for land acquisitions.

                                               Courtesy:- ET dtd:- 22nd August 2008

DEVELOPERS OFFERING DISCOUNTS, FREEBIES TO BUYERS

Developers today are offering discounts, freebies and value add items. This includes discounts in values, freebies in amenities like discounted parking space or lifetime club membership, value adds like providing interiors and ready-to move homes at little discounted rate.

Discounts would mean reduction in the upfront money the customer would be paying to the developer.

Discount in parking spaces would mean anything between Rs 10,000 to Rs 20,000. Values add interiors will include goods like fans, wardrobes and so on. Ram Yadav, head of a finance company says, "It all depends on how you position your project. Builders are trying to put together all these three elements for their customers, but again, it is not across the board."

                                                                Courtesy:- ET dtd:- 22nd August 2008

NRIS INVESTING IN PROPERTY IN INDIA

With economies all over the world going through a depression, and the domestic economy showing prospects of bouncing back, NRIs are looking at property investments here

At a time when the US and European economies are spiraling downwards, the domestic economy in general is looking up, despite the current slowdown. Not surprisingly, the NRIs are investing in various sectors, including real estate. Several real estate projects across India have garnered approximately 10-20 percent participation from NRIs. The return on investment provided by real estate here has been found to be more attractive than that offered by developed nations. Also, the simplified process of investments has reversed the equation and many NRIs have been consistently investing in properties.

Rajesh Goenka, chairman and CEO, Axiom Estates, says, "They are the most affluent lot among real estate buyers in India, showing interest in buying large chunks of land in their home country. They are not affected by the current slowdown, as they take a long-range view of the whole scenario. They have faith in the domestic economy, and firmly believe that the prices will appreciate by at least 10 to 15 percent every year. They see the downturn as an opportunity to invest in large chunks of land or even developed areas which they get at a good discount from even the top developers."

He adds, "According to our assessment, the interest from NRIs has increased almost by 20-25 percent every quarter, which is almost two to two-anda-half times in the last two to three years. Interestingly, not just investors from the Gulf countries, but even from UK and USA have shown interest."

Raminder Grover, Managing Director, Homebay Residential, Jones Lang Lasalle Meghraj says, "Many NRIs in the US and UK are not as confident as before of sanctity of their employment, while others are disturbed by negative economic patterns across developed countries. They see greater potential for India overcoming the current economic setbacks. Sentimental attachment to their country of origin is another reason."

NRIs can expect appreciations anywhere upwards of 15 percent per annum and rental yields of 4-6 percent on property here.

There are different types of NRIs, as Akshaya Kumar, Managing Director, Parklane Property Advisors, puts it. "The Gulf NRI is one who is bound to return. NRIs are looking for decent returns, and might think of holding property here, while investors from UK and US are pure investors. NRIs mostly have an affinity to the areas they come from," he says.

Bangalore, Pune, Mumbai, Indore, Baroda, Chandigarh, Gurgaon, Kolkata and Goa seem to draw the highest number of serious inquiries. So do second home destinations and extended suburbs. Those with business aspirations are investing wherever IT/ITeS is making its presence felt. Mostly all sectors including residential, commercial, and retail have seen good NRI investments.

As opposed to earlier times when an NRI had to struggle with various rules, income tax and other issues, these days the NRI is being welcomed with open arms, and this has elicited an extraordinary response. Today, NRIs enjoy high returns, easy repatriation with no tax on sale proceeds, and easy loans. There are several realtors, financers and other organisations specialising in easy financing and mortgages for NRIs and high net worth individuals.

Courtesy: - TOI dtd: - 23rd August 2008

Sobha Anantha

Sobha Developers takes great pride in delivering international quality standards to its customers.

Sobha Developers reserves the right to change specifications without prior notice, in the interests of quality and timely delivery. Please check with our Customer Relations personnel for the latest specifications and changes, if any.

Project Details                                                                                                                                 

Location                                                  :  Sobha Anantha Richmond Road, Bangalore

Type                                                         :  Apartments (Presidential)

Land / Plot Area                                    :  2000.21 SQ.m. 21522.259 Sqft.

Total No. of Units / Apartments        :  07 nos

Car Parking                                            :  Covered Parking for 20 Nos.

For the further information you can login http://www.zameen-zaidad.com

  Property companies are expediting projects, or cutting down on project completion time, by nearly 20 per cent in an attempt to realise value and overcome the liquidity crunch.

  Companies that earlier took 36 months on housing projects are now completing them in around 30 months by boosting efficiencies and using modern technology.

  Commercial project developers are going a step further, completing projects in 17 months instead of 24.

  In some instances, mainly in smaller commercial buildings, developers are trying to cut down the project completion time to a mere 9 months. Take Mahindra & Mahindra’s upcoming special economic zone in Jaipur. The company has squeezed the construction time for a commercial building to nine months from the normal 12-15 months. It began the construction of a four-storey building in November last year and has already completed two floors with complete fit-outs that already house a BPO unit.

  Less than 100 meters away, the IT major Infosys is building a five-storey building that will house a 3200 seater BPO.

  The contractor started the construction activity in July and two floors could be ready by the month-end.

  Sumit Arora, vice president of the Pune-based DS Kulkarni Developers, said, “There is a lot of pressure from customers. Everybody has seen the world. You have to be on your toes and complete projects, lest buyers go to others.” The company expects to complete its upcoming housing projects in Pune, Mumbai and Bangalore in 18-20 months instead of the usual 24-28 months.

  The construction work of DLF and Indianbulls in Mumbai, Parsvnath (Delhi) and Sobha  (Bangalore) is progressing even during the monsoons. “ Even if we cut the construction time by two months, we will save up to 20 per cent on labour and preliminary expenses, although the material costs remain the same,” said JC Sharma, managing director of the Bangalore-based Sobha Developers, which is the main contractor for Infosys.

  Sobha has prepared its own construction manual, an amalgamation of Bureau of Indian Standards and DIN (German Standards), which talks about the dos and don’ts of construction. Methods, safety-codes, tools and processes are photographed and filmed to show how construction could be speeded up. The company has also set up an in-house training school to train engineers, masons and architects on new technologies, processes and systems.

  The Hyderabad-based Indu Projects uses modular construction in housing projects, cellular lightweight concrete (CLC) blocks in building walls and beam-less slabs in commercial buildings to save on time and costs. These products save 25 per cent to 30 per cent time for the developer. Faster projects completion helps in realising funds quicker from the customers. “If you complete projects early, you can collect money faster from the customers and improve the turnover as payments are directly related to completion,” said Sharma.

  The main reason for the faster turnaround of projects is the decline in property sales by over 30 per cent in the last six months across Mumbai, national capital region (NCR) and other regions, which were the main revenue streams for the developers. Construction costs, which vary from city to city, are growing 20-25 per cent every year, said experts.

                                                                                         Curtsey: B.S   22.8.2008                

After Africa and other third world nations, the United Nations (UN) has now chosen India to set up its dream village. UN, in collaboration with Mohanlal Mittal-led Gita Mittal Foundation (GMF), aims to establish a millennium village in Amarpura-a small village in Rajgarh district of Rajasthan-which would require investments of close to $15-20 million over five years. The idea is to fulfil the basic needs of infrastructure, health, education and employment for the local population.

Mr Mittal's three sons-LN Mittal, owner of the world's largest steel firm Arcelor Mittal, and Pramod and Vinod, promoters of Ispat Industries-would be primarily involved in the funding process. The association is now awaiting final nod from the state government and is slated to begin work on the project by this year-end.

The project is structured around the millennium development goals that the UN laid out in 2000 as part of an ambitious plan to reduce global poverty. The concept of millennium villages is the brainchild of economist Jeffrey Sachs, who is also a special advisor to the UN secretary-general. So far, UN has helped corporates build over 100 such villages globally.

Besides, GMF is planning to set up 32 centres of excellence across Rajasthan with an investment of close to Rs 100 crore over a period of 3-4 years to help students become employable. The foundation has tied up with the Indian Institute of Management, Ahmedabad, (IIMA) for the same. While Mittal brothers would set up the infrastructure, faculty and curriculum would be taken care of by IIMA.

These centres would offer various short-term subsidised post-graduate courses, primarily related to accounts, finance and personality development. The first centre would come up in Churu district of Rajasthan. Under the first batch, the foundation aims to enroll at least 500 students.

Courtesy:- ET dtd:- 05^th Aug 2008

New Delhi: Red Fort Capital, a PE fund focused on real estate development, is in advance stages of negotiations with six developers for projects worth Rs 4,000 crore in various metros. The PE fund tied up with Godrej Properties to develop an IT park in Kolkata, where Red Fort has picked up a 49 per cent stake. 

                                                                        Courtesy Business Standard