BPTP on Tuesday won the rights to develop 94 acres of commercial land at Noida, in the National Capital Region, by outbidding the country’s largest realtor DLF Ltd, which offered Rs 1,17,000 per square metre, and Omaxe, which bid Rs 80,100 per square metre.

BPTP plans to create “the financial hub of north India” in the area, called Bank Street, which will include five-star luxury hotels and corporate offices. Tripathy said upon completion, office rentals in Noida would be more than its arch rival city Gurgaon.

The construction cost for the financial city will be around Rs 3,000 crores and the total cost of the project is expected to be around Rs 9,000 crores.

BPTP also has 2,000 acres of land bank. “We will have the building plans ready in the next 6-7 months,” Tripathi said. The company, which does not have any “immediate” plans to go for projects in South India, said it is in talks with the UK-based renowned architects Foster and Partners and Germany’s Aedes for the project.

The office space in Sector 94, running along the Noida and Greater Noida Expressway, would cater to the needs of a commercial place of companies and will not include any IT parks or buildings. “It is going to be 100% corporate offices and will not include any IT buildings or BPO call centers as they pay better rentals. There are no corporate offices in Noida, and with this deal, we plan to change that,” Tripathi said.

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Pune is amongst the fastest growing cities in India and is experiencing a rapid need for increase in infrastructure. The city has seen rapid increase in real estate activities over the last couple of years. The city accounts 12% of all the traffic coming on the portal, with more than 10000 listed properties from the city.

Affordable housing: There is a large demand for houses and projects below 60 lakhs, developers are still focusing on premium projects above this value. This trend for affordable housing will continue for the next 1.5 years, and developers will have to come up with more projects within the 60 lakhs bracket until the premium projects have some very exclusive features to attract. So this concludes that there is a difference in the demand and supply requirement.

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The size of the fund, which is awaiting regulator approval, is likely to be Rs 3-3.5 billion. LICHF`s new realty fund is expected to invest in residential projects. LICHF had taken a 5% stake valued at Rs 75 million in the new Rs 1.5-billion credit card arm of LIC, which is likely to begin operations in six months.

As part of its overseas expansion plans, LICHF will open a new office in Singapore. Currently, it has branches in Dubai and Kuwait. Meanwhile, LICHF Care Homes, a subsidiary of LICHF, is planning to open residential units for senior citizens in Punjab, Orissa, Kerala and West Bengal. The first project was unveiled in Bangalore.

During April 2007-February 2008, the company sanctioned Rs 73.85 billion against Rs 48.88 billion in the same period last financial year. Disbursements stood at Rs 59.41 billion compared to Rs 41.99 billion.

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“With the opening of the real estate sector, there’s a lot of need for funds,” Jhaveri said in a recent interview in Hong Kong. “The government has been giving very proactive support to the whole sector.”

The real estate market in India is worth about $12 billion and is growing at about 30 percent a year, Ernst & Young said in a report last month commissioned by the Federation of Indian Chambers of Commerce and Industry. Rising incomes, easy financing and population growth are driving demand for housing and luring overseas investors.

“The appetite for real estate IPOs will be there,” K.K. Mital, chief investment officer at Escorts Asset Management in New Delhi said a phone interview Friday. “The young work force is looking for real estate investment, and the financing is available, the banking system is supporting this growth.”

Jhaveri said that venture capitalists and overseas investors were poised to invest over $5 billion in the Indian real estate sector, without providing more details. “People are seeking more clarity” on possible changes to property regulations before investing, he said.

His forecast takes into account the possibility that India could allow real estate investment trusts, or REITs, to invest in the nation’s property industry. Still, of the 50 real estate related IPOs that he predicted would take place in the next year, he only expected a “small” number to be REITs.

In the past year, India had eight initial share offerings by engineering and construction companies, which raised $478 million, according to Bloomberg data. That compares with the six initial public offerings raising $304 million in the previous 12-month period.

Indian billionaire Kushal Pal Singh’s real estate company, DLF Universal, is seeking to revive the biggest Indian share sale once regulators decide on a complaint by shareholders. The New Delhi-based company plans to submit offer documents to regulators, paving the way for an offering by early December, Saurabh Chawla, the finance vice president of DLF, said in a phone interview Friday.

India is short of 20 million housing units, according to a study by Housing Development Finance. That shortage will get worse, according to UBS analysts, citing the growing population and increasing affluence. Asia’s fourth-largest economy grew 8.9 percent in the three months to June from a year earlier.

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“With the opening of the real estate sector, there’s a lot of need for funds,” Jhaveri said in a recent interview in Hong Kong. “The government has been giving very proactive support to the whole sector.”

The real estate market in India is worth about $12 billion and is growing at about 30 percent a year, Ernst & Young said in a report last month commissioned by the Federation of Indian Chambers of Commerce and Industry. Rising incomes, easy financing and population growth are driving demand for housing and luring overseas investors.

“The appetite for real estate IPOs will be there,” K.K. Mital, chief investment officer at Escorts Asset Management in New Delhi said a phone interview Friday. “The young work force is looking for real estate investment, and the financing is available, the banking system is supporting this growth.”

Jhaveri said that venture capitalists and overseas investors were poised to invest over $5 billion in the Indian real estate sector, without providing more details. “People are seeking more clarity” on possible changes to property regulations before investing, he said.

His forecast takes into account the possibility that India could allow real estate investment trusts, or REITs, to invest in the nation’s property industry. Still, of the 50 real estate related IPOs that he predicted would take place in the next year, he only expected a “small” number to be REITs.

In the past year, India had eight initial share offerings by engineering and construction companies, which raised $478 million, according to Bloomberg data. That compares with the six initial public offerings raising $304 million in the previous 12-month period.

Indian billionaire Kushal Pal Singh’s real estate company, DLF Universal, is seeking to revive the biggest Indian share sale once regulators decide on a complaint by shareholders. The New Delhi-based company plans to submit offer documents to regulators, paving the way for an offering by early December, Saurabh Chawla, the finance vice president of DLF, said in a phone interview Friday.

India is short of 20 million housing units, according to a study by Housing Development Finance. That shortage will get worse, according to UBS analysts, citing the growing population and increasing affluence. Asia’s fourth-largest economy grew 8.9 percent in the three months to June from a year earlier.

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Disclosing this at the Assocham conference on ‘Urban Land Markets & Finances’ held in Delhi this week, Union Minster for Urban Development Jaipal Reddy also announced that the proposed authority would work as a role model for other states to follow, particularly in view of growing real estate activities throughout the country so that the consumers get a fair deal.

Decline in the growth of office rental values in South Delhi is attributed to new supply that has entered the market this year. On the other hand, rental values in Mumbai’s Bandra Kurla complex rose by 22% from January to September 2007, marking it the fast emerging new central business district of the metropolis

Location

Current average office rentals

Average rental increase

Rs/sq.ft./mnth

Q1 to Q3 2007

Q1 to Q3 2006

CBD-CP

317

20%

76%

South Delhi

217

15%

50%

Gurgaon

113

20%

65%

Nariman point

400

33%

40%

Worli

400

33%

72%

Bandra kulra complex

295

22%

93%

CBD/OFF CBD

70

19%

31%

Suburban

48

14%

21%

Whitefield/Electronic city

27

0%

8%

Source: Cushman & Wakefield

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New Delhi, the national capital of India is one of the prime cities in the country which has witnessed the economic development plans being drafted in the Parliament house to the effects that economic growth has spurred on the real estate and other service sectors in Delhi. Incorporated as one of top three investors’ choices for real estate investment in Asia, New Delhi continues to be one of the most competent and healthy competitor amongst the property markets across the region. And as investors and buyers make a beeline for acquiring the best chunk of real estate market, the finance sector in India has evolved as the possible gainers.

The banks in India which initially did brisk business with their saving schemes has now opted for the housing finance section as a more profitable business, since the real estate scenario in Delhi shows an upswing. The demand for properties in New Delhi touches new heights arising mainly due to the requirement for a large number of residential and commercial spaces as a large number of investors are seeking investments in the Delhi region or the nearby NCR areas. Delhi evolving as a popular investment destination for investors in the residential and the retail sector has lead to escalation of property prices many-fold and are still on the rise thereby making investment in the capital city of India a deal worth to be clinched.

But the bulk of disposable income generated by the employees in the corporate sector along with easy funding by every finance company in India has of late made property investments a not so formidable task. Easy loan facilities and a horde of finance companies offering some of the best deals and dipping interest rates have also been responsible for increase in Delhi real estate investments. Almost all the major financial institutions like ICICI, HDFC, IDBI and HSBC, to name a few have successful operational bases in the city making housing loans a competitive business. This competitive market has in some ways being beneficial to the consumers and if the trend continues, the real estate scenario in Delhi is bound to offer investment opportunities for buyers and developers who would want to capitalize on this growing opportunity. And if industry experts are to be believed, New Delhi is yet to see major transformation in the real estate market as the city gears up to remodel itself for the 2010 Commonwealth Games shedding its reputation of being a ‘walled city’ to a ‘World City’ of the future.

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As far as Indian retail industry is concerned, its size is believed to be $250 billion. The sector is likely to grow at the rate of 10% per annum

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As far as Indian retail industry is concerned, its size is believed to be $250 billion. The sector is likely to grow at the rate of 10% per annum

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The firm has got a merchant banking license from the real estate regulator SEBI for its arm in India. It is also looking forward to expand its asset management and proprietary business.

Morgan Stanley has appointed Narayan Ramchandaran as CEO and country head for the company in India. Mr. Ramchandaran is currently working as the head of investment management in India (MSIM).

Four senior officials from DSP Merrill Lynch will be working with Morgan Stanly to establish its wealth management business in India. The names are Amitava Neogi, Partha Basu, Himangshu Bhagat and Himangshu Jain. The company has plans to recruit 100 more private bankers for the same.

A multitude of investment banks is considering to kick off their operations in India. The list includes the prominent names such as Goldman Sachs, Lehman Brothers, and Credit Suisse. The merchant banking license will help these firms to offer on-shore investment banking, advisory, and underwriting services.

India is a main priority for the firm and the most preferred area of continued investment. Morgan Stanley has been running its real estate advisory business in India lately and is trying to take it to new high.

Courtesy: Indianrealtynews.com

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The demand for office space in Mumbai has seen the rentals sky-rocketing in recent months with the retail banking division of Citibank taking up space in Nariman Point at Rs 550 per sq ft per month.

According to a survey report by DTZ, a global property consultancy firm, total absorption of commercial space in Mumbai, during the first quarter of 2007, was nearly 0.75 million sq ft.

“There is an increased demand for office space by IT/ ITES and BPOs in Mumbai. We have taken a decision to convert all the smaller malls, which are below three lakh sq ft , into commercial buildings,” Mr Hemant Shah, Chairman, Akruti Nirman Ltd, told Business Line.

“Size is a critical factor for the success of any retail project. We feel that smaller malls do not have a longer life span. Our focus is to create destination malls of about three to five lakh sq ft,” he added. Another Mumbai-based developer Ajmera Builders seems to have followed a similar model. According to industry sources, the company has converted its Citi Mall into a mixed-use project with companies setting up offices within the mall premise.

Mr Chhotalal S. Ajmera, Chairman and Managing Director, Ajmera Builders, was not available for comment. According to Mr Susil Dungarwal, a Mumbai-based retail and realty analyst, “The cost of reinventing an unsuccessful mall is high. Besides, success is also not guaranteed.

“Hence, transforming retail malls into commercial buildings is one of the ways out. According to the DTZ report, “rentals have been following steady growth across most micro-markets in Mumbai. With IT/ITES companies setting up base in Navi Mumbai due to attractive HR catchments, rental values in that region have now touched almost Rs 60 per sq ft per month.”

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This is way above the margin of Rs 1,100 per sq ft that analysts are predicting. A report brought out by Centrum Broking Pvt Ltd on Tuesday states that based on Puravankara’s future realisation of Rs 3,200, and given that construction cost and other expenses remain the same, the company would be making around Rs 1,100 per sq ft.

However, Ravi Ramu, Puravankara’s director, finance, says Centrum’s estimate is understated. “Based on the average sales price, construction cost and land prices, we expect to make Rs 2,000-2,500 per sq ft on each of our land banks,” forecasts Ramu.

So what is guiding Ramu’s optimistic projection?

He says that Puravankara has an edge over other developers because of its land cost competitiveness, which is just Rs 97 per sq ft. Its rivals like DLF and Unitech, which are now trying to enter the South Indian real estate market, have an average land cost of Rs 252 per sq ft and Rs 169 per sq ft respectively.

Other developers like Sobha (Rs 221 per sq ft), Parsvnath (Rs 256 per sq ft), HDIL (Rs 127 per sq ft) and Omaxe (Rs 146 per sq ft) also have an average land cost higher than Puravankara. The other reason why the south-based builder has set high margin target is its complete reliance on inhouse construction and direct sales force, which helps its save on contractor’s margins.

“When you outsource your contracting job, you sacrifice on that margin. As we have inhouse resources to execute a project from conceptualisation to completion, it enhances our margins,” says Ramu.

The company would also be increasing its reliance on technology rather than labour. This is expected to save it time, labour and cost, which in turn would improve its revenues in the medium to long term.

“We have already initiated talks with North Ireland-based Mivan Group’s Malaysian subsidiary for importing construction equipment. We are trying to bring in more mechanisation in our project development so that shortage of labour does not affect us negatively,” says Ramu.

Puravankara’s margins would also be boosted through its diversification into commercial space. Currently, its revenue mix consists of 98% residentialand 2% commercial. This would change to 72% residential and 28% commercial by 2010.

This is something that is being looked upon as a positive by analysts. “We are excited about the shift in focus towards the commercial office vertical, which has relatively higher yield per acre as compared middle income housing vertical,” say Siddharth Bothra and Satyam Agarwal of Motilal Oswal in their report dated September 17.

The duo has expressed concern over the builder’s concentration of land bank (72%) in Bangalore. Analysts also feel that Puravanakara’s current construction cost at Rs 1,350 per sq ft is a bit on the higher side compared to normal cost of Rs 1,200-1,250 per sq ft.

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Purchasing and selling a real estate property means high amount transaction and a significant investment; hence reliability, trust and faith plays a major role in this field. Depending upon the hour of the need the real estate business required specialization in fields like real estate marketing, appraisal or valuation service, brokerages, property management etc

Within each field, a business may specialize in a particular type of real estate, such as residential real estate, commercial properties, or industrial property. In addition, almost all construction business effectively has a connection to real estate or commercial properties. Zameen-Zaidad.com is perfect place in all fields. You will find all services for real estate marketing, investment property, real estate for sale and commercial property for sale in India.

An important term used among the terminology of the real estate is the market value and price. The market value is similar to price of a commodity but has some difference too. The definition of market value it is that Market Value is an estimated amount at which a property should exchange on the date of valuation between a willing buyer and a willing seller in an arms-length transaction after proper marketing wherein both the parties have acted knowledgably, prudently, and without compulsion.

Market value is the fluid concept, ever changing, while price is a historical fact at a time of transaction. A price obtained for a specific property under a specific transaction may or may not represent that property's market value: special considerations may have been present, such as a family relationship between the buyer and seller, or else the transaction may have been part of a larger set of transactions in which the parties had engaged.

Commercial property India is committed to providing exceptional commercial real estate services across all commercial property types and service lines. Whether you are looking to acquire, sell, lease, or develop commercial property, or your interest is in real estate agent, real estate marketing, real estate investment, real estate companies, rental property, real estate sales, commercial property for sale or whatever related to commercial property we have solution for your requirement.

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Bear Growth Capital Partners (BGCP), an affiliate of BSMB (Bear Stearns Merchant Banking (BSM is a leading institutional private equity firm focused on making equity investments in middle-market companies). BGCP looks for opportunities to work directly with experienced management teams and provide capital and investment expertise to help companies grow. With target investments between $20 million to $100 million in enterprise value, BGCP provides a complementary capital pool to BSMB.

The Vatika Group holds a vast experience in construction business, hospitality, and facilities management and has a portfolio of resorts, restaurants, hotels, farmland, and shopping malls. The group is taking up the projects worth Rs 3,200 crore, across real estate and hospitality sector.

The Vatika Group proposes to use the funds to meet its working capital requirements. A senior representative from Bear Capital, however, declined to comment on the deal. If the deal goes through, it would mark a case of a global PE firm investing directly in a parent company instead of investing in a FDI-compliant project.

Many global PEs prefer the second option as it minimizes their risks. In fact, Delhi-based Vatika Group is in talks with Goldman Sachs and US-based Wachovia Corporation, besides US-based Bear Growth Capital.

In the words of a senior officail of Vatika Group, “We are in talks with Bear Growth Capital, Goldman Sachs and Wachovia Bank to raise funds. Goldman Sachs and Wachovia are likely to invest in projects. If the deal with Bear Growth Capital goes through, the money will be used to meet the company’s resource needs.”

Anil Bhalla is the promoter and chairman of the Vatika Group. Currently, the group is executing projects valued at over Rs 7,900 crore and is expected to bag more contracts in the future. Money will be required to fund these projects, which has prompted the group to look at PE investments for the first time.

Courtesy: Indiarealestateblog

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With the property prices shooting up in most of the Indian metros, buyers are looking towards investing in two and three tier towns where real estate development is growing at a rapid pace. Chandigarh in North India ranks high in the list of potential cities for a vibrant Indian property market. With rapid development taking place in its outskirts areas such as Panchkula, Mohali, Dera Bassi and Zirakpur, Chandigarh is certainly one of the booming real estate cities of India.

It wouldn’t be unfair to say the NCR in the north has dominated the Indian Real Estate industry as there is tremendous demand for Delhi properties, Gurgaon properties and Noida and Greater Noida properties. The property prices of Delhi properties have seen an appreciation in their values in its upcoming areas such as Dwarka, Mayur Vihar and Patparganj. Greater Noida is following close on the heels of Noida where the property rates have increased in a short span of time due to the upcoming international airport, metro network and the upcoming Commonwealth Games.

The property prices in Mumbai are at an all time high as there has been a considerable increase of around 40 per cent in many of its locations. Increased property rates in Mumbai have made real estate developers and buyers look for more affordable options in the suburbs like Navi Mumbai. Areas beyond Vasai, Virar, Dombival, Thane and Panvel are being touted as the upcoming townships for real estate development in western part of India. India real estate in the South are rapidly developing in Chennai, which has seen a large emergence of IT companies in the recent past thereby bringing in a demand for both commercial and residential properties. Bangalore the IT hub of India already enjoys a high rate of real estate development and to meet the growing demand, even the suburbs of Bangalore are being developed by India real estate developers.

Primarily India properties are concentrated around the metros and the suburbs along with some of the two tier cities such as Chandigarh, Pune, Kochi and Jaipur. Investing in a property in any one of the emerging cities and towns are going to appreciate in value as properties across India are experiencing property price rise. For best and transparent deals in Indian real estate, please visit our website http://www.zameen-zaidad.com

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