K. Jayaraman, president of Coimbatore Association of Realtors, says movement is slow for residential units (apartments) in the price range of Rs. 15,000 to Rs. 20,000 a month. This segment has less demand and more supply. But demand for independent houses and dwelling units in gated communities is high. Residential units for rent between Rs. 6,000 to Rs. 10,000 a month is also high and have nearly 70 per cent occupancy.

A leading property consultant in Coimbatore says that occupants look for quality of construction, facilities and infrastructure in the locality. Those who travel to work every day prefer to take a house for rent in the city. The average purchase cost of an apartment unit (two bedroom) in the city is Rs. 60 lakh and if a buyer takes even Rs. 40 lakh as loan, the EMI will be nearly Rs. 40,000. However, the rent is about Rs. 20,000. Those that come in the rental range of Rs. 6,000 to Rs. 10,000 and have good demand are flats in the first or second floor in independent houses. Many in Coimbatore are now going in for the 11-month rental contracts for residences and three year contracts for corporates. The trend is also towards furnished apartments offered for rent. Commercial users such as hotels and offices prefer independent houses located off the main road as the rent is Rs. 10 to Rs. 15 less for a sq.ft. compared to commercial spaces on the main road.

Salem

Despite a boom in the number of multi-storeyed flats in Salem, rentals for residential units and office spaces have registered a manifold increase in 10 years. As the city's suburbs are highly industrialised, the demand for houses is increasing. In 1990, it was a rent of Rs. 4,000 for a 750 square feet house per month and today it has shot up to Rs.8000, says a resident.

Fewer houses are available for rent in main areas such as Fairlands, Gandhi Road, Alagapuram and Maravaneri in the city. In the low demand areas, even a small portion of 300 square feet house is rented out for Rs. 3,000 a month and this has hit the mid and low-income groups. They have to go to suburban towns such as Omalur and Taramangalam and neighbouring villages in search of houses with lower rents.

The 100 per cent increase in rents for dwelling units and commercial enterprises has a direct bearing on the supply-demand gap too. Hence, many prefer to buy flats instead of spending money on exorbitant rents, says a leading property promoter. The city now boasts of nearly 1,000 flats while another 1,000 are under construction. Many buy apartment units to rent these out. A 1,000-square feet flat in the heart of the city fetches Rs 15,000 per month at present, the promoter says.

Up in Erode

In Erode, rents for houses have gone up by 10 to 15 per cent in many parts of the town. Areas such as Sakthi Nagar, Selvam Nagar and Ganapathi Nagar have seen a sharp rise in the rentals due to proximity to schools and colleges, points out a real estate consultant.

The rental value of a good two-bed room apartment, which earlier hovered around Rs. 5,000 a month, has now gone up to Rs. 6,000 in these areas. A three-bedroom apartment has a monthly rental of Rs. 6,500 to 7,000.

Low supply of houses

"Many parents prefer to move closer to schools and colleges and they are willing to pay higher rent. It is also possible to get independent houses with normal facilities for Rs. 5,000 a month. But, these houses are located far away from the main roads," says Sathishkumar, another real estate consultant. Rents for spacious independent houses in Periyar Nagar and colonies located in the centre of the town are Rs. 8000 - Rs 15,000 a month. The significant hike in rents is primarily due to low supply of residences, the consultants say.

Slowdown in Tirupur

In Tirupur, escalation in the cost of housing loans is said to have slowed down the house construction business to a large extent.

"The rate at which the new housing projects are coming up in the city has reduced significantly as people are now worried over the EMIs rising in tandem with the interest rates," says K. Shanmugaraj, general council member, Builders Association of India.

Usually, the decline in demand for new houses will result in people looking for rented homes which, in turn, can escalate rentals. However, they have been more or less steady in the Tirupur garment cluster due to a dip in occupancy rate after the textile industry started experiencing shortage of manpower over the last one year, Mr. Shanmugaraj says. However, rents remain high in many parts of the town even if occupancy rate is low.

The Hindu

Walk to office and home is the 'Real' mantra now
Houses in car-dependent U.S. neighbourhoods are currently priced below the cost of the material that goes into their construction. A look at the economy by M.A. Siraj
When real estate crashes, the economy goes bust. Why? Because the infrastructure that real estate supports represents 35 per cent of the total infrastructure, i.e., transportation, sewerage, power and water. The crash in demand for realty in the U.S. caused widespread havoc and triggered the much needed-introspection that an insouciant economy had not allowed to occur earlier. The larger question that is being asked now is: How long can America continue to afford exurban fringe, low-density, and car-dependent neighbourhoods as has been its wont in the post-World War II phase?
Knives are out against status-quoists and a bevy of brash new advocates propose homes for people in central areas of cities and closer-in suburbs where one can walk to stores and mass transit railheads. It is being pointed out that such walkable urban real estate has experienced less than half the average decline in prices from the housing peak.
Experts point out that houses in car-dependent neighbourhoods are currently priced below the cost of the material that went into their construction.
Things have come to such a pass that their owners have no financial incentives to invest in their upkeep. Consequently, decay has set in and much of these neighbourhoods are turning into slums.
After the mortgage crisis
Demand is yet to rise from the nadir it touched following the mortgage crisis in 2008, though optimists in the realty sector clothe the all-pervasive gloom with myriad clichés such as 'there had never been any better time to buy'. Chief Economist of the National Association of Realtors (NAR) Lawrence Yun in an online interview claims: "The hard data in the housing affordability index, which takes into account median income, median home price, and mortgage rates, has been bouncing around in the 180 to 200 range since the beginning of this year – the highest reading since the index was first used in 1971."
Contrast this with what Gail Lyons, NAR's Regional Coordinator for Asia and Pacific, has to say: "I will tell you this…don't believe everything you read in the media. There are certainly areas that have been very badly hit by the recession, primarily Florida, Arizona, Nevada and California. However, there are also other areas that have either simply not appreciated or have actually begun to accelerate. Where I live in Boulder, Colorado, we've had 2-3 per cent appreciation for the last several years but the main problem is very few buyers given the relatively high unemployment rate, meaning that there are fewer than normal sales." (Gail was 2002-2005 NAR President's Liaison to India Institute of Real Estate too.)

And the deadweight… Suburbanisation became a phenomenon after World War II. People moved out to suburbs in droves. Downtowns came to be associated with business activity and could afford residential facilities only for the top few rich and their maintenance staff.
Builders turned into town planners and that is how most of those small neighbourhoods suffixed with 'dales', 'woods', 'brooks', 'hills', and 'ridge' emerged around the metros. Suburbanisation pushed the economy with construction boom, appliances, development work, cars etc. Now those are acting as deadweight on current recovery.
Transportation
It is estimated that on an average, residents in suburban neighbourhoods spend 24 per cent of their income on transportation. Those in walkable neighbourhoods spend half of that, thus more people are expected to jettison cars and transfer from two-car households to one-car households. This will leave a household one lakh dollars to service house loans.
Lawrence Yun concurs that the tide is now turning in favour of walkable neighbourhoods from drivable ones.
Says he ( online interview ): "Americans favour walkable, mixed-use neighbourhoods, with 56 per cent of respondents preferring smart growth neighbourhoods over neighbourhoods that require more driving between home, work and recreation."
Quoting NAR's Community Preference Survey, Yun says: "When considering a home purchase, 77 per cent of respondents said they would look for neighbourhoods with abundant sidewalks and other pedestrian-friendly features, and 50 per cent would like to see improvements to existing public transportation rather than initiatives to build new roads and developments."
Habitation pattern and real estate growth has always been determined by transportation facilities. Neighbourhoods came to be accepted initially when realtors who planned them ran buses (called streetcars in the U.S.) in collaboration with power supply companies.
They were in themselves not meant to generate profits. They merely boosted the real estate value of the neighbourhoods.
Every neighbourhood with a 5,000 population had them.
The votaries for pushing the development of core areas of cities have come up with new proposals. They want zoning codes to allow denser localities. They also want the low income households to be provided homes along the rapid transit systems. Yet another proposal is to link home loans to electronic map to take into account how much homeowners will have to pay for transportation.
Researches by Scott Bernstein, founder of the Surface Transportation Policy Partnership, suggest that location-efficient mortgages will have lower default rates.
Population growth
Demographers predict the U.S. population to grow from 310 million in 2011 to 440 million in 2050.
This will result in epic amount of money pouring into real estate.
Another projection is that 85 per cent of the new households formed between now and 2025 will have less children and will have more income to put into housing.

The Hindu

Karaikal port expansion funding
Chennai: Karaikal Port Private Limited, a subsidiary of Chennai based MARG Limited has finalised its fund raising plans for its Phase 2A expansion. Bangalore headquartered Ascent Capital, a leading private equity firm has decided to invest a sum of Rs 200 crores in MARG's Karaikal Port.

The Hindu

LEED Silver for Ascendas
International Tech Park Chennai (ITPC), a JV with TIDCO and the flagship development of business space provider, Ascendas, has been awarded the LEED Silver certification for Phase I, the Pinnacle building. The building received LEED Silver status in the category Existing Buildings: Operations & Maintenance (EB:O&M), version 2009 standard.
Built in 2005, the 10-storey Pinnacle building is the first of the three buildings at International Tech Park Chennai, and offers 542,000 sq.ft. of business space. It has since made several modifications and retrofits to conserve energy and water and reduce harmful greenhouse gas emissions. It is the first building in Chennai to achieve the certification under the LEED version 2009 EB:O&M standard. It is also the first multi-tenanted building in India to be certified under the new version LEED EB O&M v 2009 standard.
LEED is an internationally recognised green building certification designed by the U.S. Green Building Council.

The Hindu

Heritage remix
The Premkumars' renovated home retains the original facade, but has been totally transformed inside

Location: Nungambakkam
Architect : Anuradha Rao
It was an 80-year-old, old-Madras house, with elements typical of the times it was built in – an imposing façade that rises vertically without being split into levels, balconies with large arched openings built into the façade, madras tile roofs with massive teak rafters running over huge ceiling spaces… and of course, the crucial element of memories spanning generations. "But the house had become structurally weak and inconvenient to live in. We wanted to rebuild the house, but decided to retain the heritage aspect", says S. Premkumar, president, HCL technologies.
In its new avatar, the house retains the façade, and when you step into the house, even from the main doorway, you can see the entire span of the house - right up to the back door.
The numerous cross walls inside the house were done away with to create a more spacious ambience. Coupled with the large 13-feet ceiling height, the house presents one huge and exhilarating flow of space, with niches demarcated by aesthetic elements instead of walls. A walk–in, glass walled green courtyard was created in the eastern wing of the house, and this serves to shower a flood of light into the house from dawn to dusk, while the stairway alongside it up to the private spaces on the first floor.
The house qualifies for an informal green rating, with no new wood used in the house, an idea put forward by the couple's school going daughter, Aaradhana. The 150 odd teak rafters that held up the roof have been fashioned into wooden floors, wall panels, window frames, railings of stairs. Even the ancient double doors have been reused by gluing them together to form solid single doors.

The Hindu

Pre-cast slabs make their way in

The use of pre-cast slabs is getting common as they are easy to handle and dismantle for modification.
High demand is driving the growth of multi-storeyed residential and commercial buildings. With labour shortage, tight delivery schedules, and demand, construction firms are switching over to pre-cast slabs.
P. Arun Prasad, President of the Coimbatore Centre of the Indian Institute of Architects, says just a handful of plants are in operation in the country and two of these are in Tamil Nadu.
Getting popular
Abroad, in countries that have long winters, finished walls, wood floorings, and even foundation is pre-cast and mobile pre-casting units are also common.
Indian companies are importing technology and making pre-cast columns and slabs.
The Highways and Railway Departments have been using pre-cast structures that are made at the construction site.
Pre-fabricated or pre-engineered roofings, slabs and steel walls are common in India in the industrial segment. The concept of pre-cast is becoming popular in the residential and mass segment now.
Some of the large-scale construction companies have started investing in pre-cast plants for their captive use. Pre-cast concrete structures can be used for compound walls, panels, pavement blocks, kerbs, and under ground drainages.
The structures are easy to handle and can be dismantled without damage due to any modification in the future.
Mr. Arun Prasad says the pre-casting units can make the entire range of products required for construction or smaller units can make specialised products such as water tanks.
Minimum investment of Rs. 50 crore is required for a medium-sized plant and the units target construction sites within 250 km radius.
Installation
The architects give the drawings for the structures, and structural engineers at the plants or for the project give the dimensions of the pre-cast products. The plants not only manufacture but also take up installation of the structures at the construction site.
These products are viable for villas and multi-storeyed buildings. In some cases, thermal insulation is given for the external walls to control heat radiation. More awareness will increase the use of these structures.
"It saves time and time is also money," he says. Further, the quality of the finished product is superior. Civil engineering students should also tap the opportunities in this segment.
Awareness
According to K. Viswanathan, former State President of the Builders' Association of India, awareness on uses of pre-cast is increasing.
Standardisation of dimension of the structures will help better use of these products.
The use of pre-cast structures is all set for a big boost in the construction sector in the coming years with several challenges that builders face, he says.
The structures are easy to handle and can be dismantled without damage for modification
m.soundariya preetha

The Hindu

The right time to buy property
Real estate is poised for slow and incremental growth and genuine buyers need not ponder much and delay the final call in selecting a place and closing the deal, writes T Lalith Singh

There is no time like now. Even if property acquisition is an option that you are exploring, then the adage could hold good.
Like most of our exercises at acquiring something, particularly that comes at a cost and for some happens to be once in a life time acquisition, all kinds of assessment are made. The same applies in property matters too.
From enquiries with those whom we think to be in the know of prevailing market to having lengthy discussions with those in locations that are high on preference list is a common thing.
Location perhaps gets resolved quickly but it is the pricing aspect that keeps troubling and forcing one to drag a decision.
Particularly in the city now, most buyers have put their final decision on hold for last one year given the prevailing political scenario and the ongoing agitation for the Telangana.
Telangana factor
The T-factor, the construction industry concedes, did affect the decision making to some extent but adds that the trend has been changing.
Will the prices come down further? No, is the vehement response from most in the real estate who list out several reasons to support their point. From construction material turning costly to rise in labour costs to hike in taxes, the factors according to them are many.
Genuine buyers need not ponder much and delay the final call in selecting a place and closing the deal, it is reasoned.
Since the upheavals of boom time have died and settled down, the real estate is said to be poised for a slow and incremental growth.
As a builder says, "gone are the days of boom time when several looked at making neat profits with quick property transactions.
Anyway, that was for speculators and not for genuine buyers".
The T-factor might continue to dominate the scene and the possible outcome of the agitation and its repercussions could be debated for long in terms of property development and effects on price.
But from the industry side, builders say whatever the outcome be, there was little to affect the prospects of real estate and rule out the possibility of some drastic fall in the pricing.
Another reasons, "if you have to buy a property for yourself, then the right time is now, that is when you feel the need for a home and when you are ready with money to acquire one. All other issues are extraneous".

The Hindu

Interest rate vs buyer interest
During the last 15-18 months, the Reserve Bank has raised the repo rates 12 times and the cumulative effect has been a steep rise in home loan lending rates. A look by K. Sukumaran
The RBI's credit policy quarterly review announced on September 16 by Governor D. Subba Rao, has placed depositors, investors, and even bankers in a piquant situation.
What the RBI has done is a simple raise in repo-rate by a mere 25 basis points. In the normal course, it makes the borrowings by banks from RBI costlier by a quarter per cent. The banks may even pass this on to the borrowers. Yet, why has the topic created so much criticism? Let us have a critical analysis of this interest rate tool vested with the RBI as a part of various monetary control measures and the effect of such action on the economy at the macro level, as it is the man in the street who faces the music ultimately.
The Reserve Bank of India Act, among other things, has entrusted the RBI with the onerous task of 'monetary control'. This includes issue of notes & coins, and management of money supply through treasury operations and interest rate mechanism. Treasury operations are mainly through sale and purchase of treasury bills on behalf of the Central Government whereby the money in circulation is either increased or decreased, which affects the purchasing power of the general public. Interest rate is the other tool intended to effect changes in cost of lending and borrowing. The banking system is being used as a vehicle to achieve the above objectives.
The RBI's role
During the last 15-18 months, the Reserve Bank has raised the repo rates 12 times and the cumulative effect has been a rise of 3.25 per cent in lending rates. This rise has been seen and felt mainly in home loans, auto loans and other personal borrowings. The home loan rate has increased from eight per cent to over 11.5 per cent, leading to a very adverse impact on cost of housing. All the rate increase has been effected in the name of controlling inflation. In this process, some banks even stopped offering 'fixed' rates.
The latest interest rate hike came close on the heels of a hefty rise in the cost of petrol, which increased not only the cost of transportation, but of all goods and services. The interest rate hike is also going to increase the cost of bank borrowings as most banks have already given effect to the hike while others have indicated their intention to do so. This, in turn will raise the prices of all commodities including real estate. Real estate is not merely land, but the materials used in construction, cost of labour and even maintenance.
When money control measures are enforced, unaccounted/black money will go into circulation, pushing up the prices further. Inflationary pressures have been mercilessly going up for more than a year now when the RBI has been 'upping' interest continuously. Other inflation control measures which are to come from the government have not been there in reality and what little measures have been initiated did not practically have any effect at all. Increase in wages and other services too have affected the price line, making the cost of living above the ' aam admi's' reach.
Real estate scenario
Since 2009, in the aftermath of the 2007-09 global economic meltdown, the real estate sector in India has been witnessing a rise in demand, though gradual. The uptrend in software industry growth did contribute substantially to this rise in demand.
When hiring graph moved upwards, individual-centric demand for buying property too increased. Marginal interest rate increases did not really dampen this demand all along. But, when the slow doses of higher interest rate lead to cash crunch arising out of general price rise coupled with the increase in EMIs ( Equated Monthly Instalments), the first time home buyers and the second home buyers felt the pinch. With general rise in cost of living and cost of childrens' education, and galloping prices of fuel and vegetable/fruits/fish/meat, the salaried class found it hard to balance their budget.
Cost of financial services, credit card services, bank account services etc too went up and all these put together may, in the days to come, compel the middle class consumer to shun investments in property. Rising rentals too pose serious problems and except in some banks and public sector institutions, special housing facilities to the employees do not exist. The software and MNC employment also go by 'package', rather than perquisites.
Future outlook
Remember the days of rationing through Public Distribution System (PDS) and provision of accommodation and transport by the employers, as also the medical assistance and supply of medicines to the employee/family by the government which used to be the only provider of employment. It may look odd if one suggest that the private sector too may think of providing ration/medicines/transport /accommodation to its employees, rather than a large 'package'. However, in the absence of any control on prices, and increasing outgo for essential commodities, domestic savings will go down, and the dream of owning a house will remain unfulfilled and deferred for a future date. Investments in commercial property by business magnates and corporates will, of course, continue to rise, as also the high end residential housing market. The affordable segment can flourish by making use of special (teaser) rates like the one introduced by the HDFC recently. Another feature can be an increase in the loan tenure to 25-30 years from the present 15-20 years so that the EMI can be kept as low as possible. There is also a possibility of increasing cooperative ventures in the property development sector, so that the escalation in cost can be restricted to the minimum profit margin, which will go to the benefit of the shareholding public. The next six to 12 months can be a very trying time for the real estate sector.

The Hindu

Build homes with focus on energy conservation

A little thought spent on the heating, ventilation and air-conditioning solutions for home or any other establishment can go a long way in reducing the energy requirements and thus, cutting down the power bills. With green technology solutions penetrating the residential segment too, the day is not far away when 'high performing' homes equipped with smart lighting system, solar heating equipment, and recyclable/recycled construction material will be the norm rather than exception. Air-conditioning especially consumes 50 to 60 per cent of the energy in any establishment, and is one area where equipment with high performance at low energy consumption will make a lot of difference, feels B.B.N. Prasad, a HVAC design consultant and member of Indian Society of Heating, Refrigerating and Air-Conditioning Engineers (ISHRAE).
"By doing energy modelling after the designing of any residential building, one can save upto 40 per cent in terms of energy consumption, and power bills," Mr. Prasad says on the sidelines of a press conference for announcing ACREX-2012 to be held in Bangalore from February 23 to 25. ACREX is an international exhibition of green technology solutions and green infrastructure organised annually by ISHRAE.
Minimising heat within the building can reduce the loads on AC unit, thereby resulting in power conservation, he said. Single or double glazed exterior which transmits light but blocks heat, insulated roof, and use of lighting and computer systems which do not generate much heat are some ways to reduce the AC use, he said.
Also recommending CFL lamps, LED lighting system, daylight sensors and motion sensors to reduce power consumption for lighting, he said building orientation with ample scope for natural light could make a difference too.
Opening and closing of the refrigerator door a number of times in a day could add fuel for the electricity metre, he warned. Up to 30 per cent of the cold air within can escape every time one opens the refrigerator door. Use of appliances with star rating are part of a high performance home, he added.
SWATHI.V

The Hindu

20.2% Decline in PE Investment in Real Estate Sector
Private equity investment in India's real estate sector declined by around 20.2% to $831 million (about Rs 3,740 crore) in the first five months this fiscal due to sluggish demand. Factors like tight availability of funds with PE players and delays in project execution prompted fund houses to adopt a cautious approach toward the real estate sector, according to data compiled by research firm Venture Intelligence.

Indian Realty News

DLF in Debt Cut Mode: Sells 28 acre Gurgaon Plot to M3M for Rs 440cr
DLF has sold a 28-acre plot in Gurgaon to developer M3M India for 440 crore, in the first among many such big-ticket sales it has lined up this fiscal to bring down mounting debt. At least two persons involved in the deal said the plot in Gurgaon has all approvals and permission for a group housing project. M3M, which beat Tata Realty and Mahindra in the race for the land, has already paid around 150 crore to DLF. The balance will be paid within a month. The source said M3M is financing this buy though internal accruals.

Indian Realty News

Nairs of Hotel Leelaventure in talks to sell Chennai property

The Nairs of Hotel Leelaventure, India's fourth largest hospitality chain, are in exploratory talks to sell their upcoming beachfront luxury property in Chennai to NRI industrialist Ravi Pillai as they seek to reduce the company's debt. Last month, it sold its Kovalam property to Ravi Pillai for Rs 500 crore

Magic Bricks

Measures To Avoid Balcony Collapse

The news of balcony collapse in Mumbai during Ganesh procession on September 10, 2011 has sent a wave of fear in the country and led many of us to ponder.

Metroplots

DLF Seeks Approval From BoA To Sell Pune SEZ; Will Be Considered On September 19

NEW DELHI: DLF has sought approval from the Board of Approvals for SEZs to sell the shares of its IT SEZ in Pune to a foreign investor.

Metroplots

New Land Acquisition Bill Impractical: Developers

The proposed bill on land acquisition is not only anti-development but also impractical, feel developers and builders. If the bill is passed and implemented, there cannot be any planned development of townships in the country, said Mr Anil Sharma, CMD of Amrapali Group, who is also vice-president of Confederation of Real Estate Developers' Association of India (Credai). "This bill is kind of one-sided, ill-thought-out doles may sound very altruistic and pro-poor, but these are unsustainable and will kill the goose that lays the golden egg," CREDAI said. Indian Realty News

Indian Realty News

8th FICCI International Real Estate Summit 2011

FICCI is organising the eighth edition of “International Real Estate Summit” on 22-23 September 2011 at Hotel Trident, Nariman Point, Mumbai with the theme “Time for a Paradigm Shift in Realty? India and Beyond”. Kumari Selja, Hon’ble Minister of Housing and Urban Poverty Alleviation and Minister of Culture, Government of India will inaugurate the summit and deliver the inaugural address in the august presence of Mr. Prithviraj Chavan, Hon’ble Chief Minister, Government of Maharashtra. Mr. Kamal Nath, Hon’ble Minister of Urban Development, Government of India will also deliver a special address at the summit. The two days summit will witness eminent speakers engaged in enlightening deliberations on various topics like sub-urbanization-the road ahead, real estate rebranding-social change, sustainable and green real estate development, cross-border investments opportunities, REMFs, affordable housing, real estate challenges of this decade & way forward and so on. FICCI jointly with Ernst & Young will also release the annual Knowledge Paper on the sector at the Summit. Visit - www.ficcirealestatesummit.com for details and special rates on delegate fees.

ficcirealestatesummit

Luxury Juhu Bungalow Sold for a Huge Price

An industrialist is all set to own a super-luxury, 11-storey bungalow apartment building-JVPD1-constructed by Mayfair Housing Pvt Ltd at Juhu, costing INR 105 crore. Real estate sources say the deal is unique for the simple reason that the building has been purchased by a sole individual. "Considering that apartment sales have dropped so much, the sale of an entire building surprised us, that too, at a reasonable price when one considers the financial turmoil," said a leading broker. At the sale price of Rs 105 crore, the rate per sq ft works out to about Rs 23,000, less than the quoted market rate of approximately over Rs 28,000 a sq ft, said brokers. Mr Nayan Shah, Chief Executive Officer of Mayfair, said the deal was yet to be finalized. "Negotiations are still on. However, the price is much lower than the Rs 105 crore being quoted," said Mr Shah.

propertyncr.net

South City Projects to Foray into Sri Lanka Real Estate Market

South City Projects (Kolkata) Ltd, a consortium of Merlin Group, Shrachi, Rameswara Group, Emami, JB Group and Sureka Group will will enter the real estate sector in Sri Lanka. The company, through its Sri Lankan subsidiary Indocean Developers Pvt Ltd, will invest nearly $100 million (approximately Rs 450 crore) to set up a residential-cum-commercial project in Colombo. The mixed-use project will be funded through a combination of debt and equity.

Bigha

Government Panel Recommends Rs 1.85 Cr Acre Reward for Mohali Land

Amid growing concern over inadequate compensation offered to farmers in many states for land acquisition, a panel has recommended the highest ever reward of Rs 1.85 crore per acre to be given to farmers for procuring land in Mohali for an ambitious Medicity project. "The District Land Fixation Committee has recommended paying compensation amounting to Rs 1.85 crore to farmers for acquiring their land at Mullanpur in Mohali," a senior official of the Greater Mohali Area Development Authority (GMADA) said. About 150 acres of land has been proposed to be acquired from farmers at Mullanpur, near Chandigarh, for setting up the Medicity project.

swagatamindia

Higher Property Tax For Luxury Hotels, Multiplexes In Delhi

From next year, five star hotels, multiplexes, petrol pumps, guest houses, gymnasiums and clubs among others will have to pay a higher property tax, as the Municipal Corporation of Delhi (MCD) is planning to implement the recommendations of the Municipal Valuation Committee (MVC). According to MVC recommendations, all the above mentioned commercial properties have been put under category A - which stands for upscale colonies such as GK-I and II, Vasant Kunj which pay the highest property tax, irrespective of location. Till now, these properties have been paying property tax as per the category of the area. If a five-star hotel was in D category area, then it paid less property tax as compared to a five-star hotel in the A category. According to MCD officials, there are nearly 100-odd high-end hotels which are currently under category D,E,F,G and H. The MVC recommendations will be tabled at MCD's standing committee meeting on Wednesday. According to sources, the ruling BJP is all set to implement the MVC recommendations. But with MCD elections scheduled for next year, it is likely to refer the matter to a sub-committee to study the recommendation again before they are implemented.

swagatamindia

Regulatory Body for Real Estate will lead to Corruption: CREDAI President

Real estate industry body CREDAI opposed constitution of a regulatory body for the real estate sector, saying that it would become a "breeding ground for corruption" if implemented. "The proposed regulatory bill will become a breeding ground for corruption (if implemented)," the Confederation of Real Estate Developers Association of India (CREDAI) President Lalit Kumar Jain said.

Indian Realty News

Trouble for Sahara as MCA Extends Support to SEBI

In a move that may spell more trouble for Sahara group of companies , Sahara Real Estate Corporation Ltd and Sahara Housing Investment Corporation Ltd the ministry of corporate affairs (MCA) has expressed its support to market regulator Sebi's June 23 order against the two companies. In an affidavit, the ministry states that both Sebi and MCA work in tandem as the objective is to protect small investors. "Both Sebi and MCA work in tandem for protecting rights of small investors. So the question of technicality of jurisdiction is not the way to look at the issue," the ministry said in the affidavit filed before the Securities Appellate Tribunal (SAT). SAT is scheduled to hear the matter as per the directions of the Supreme Court on July 15 wherein the apex court had asked the Sahara group companies to approach SAT against the Sebi's order. The order asked the entities to return the money they had raised from investors through the Optionally Fully Convertible Debenture (OFCD) scheme within three weeks along with a 15 per cent interest. The Sahara group firms had approached SAT after the directions.

realestate.avashya

Hit by Fund and Permit Hassles, Hotel Majors Stall Projects

Many leading hospitality companies looking at expansion are either deferring launches or stalling projects on the back of various challenges including fund crunch and roadblocks in getting permits. According to a study by consulting firm HVS, the hospitality companies had announced to add 90,000 rooms by April 2015. Realistically, industry experts say, only two-thirds of the figure will materialise by then. Of the rest, some will get delayed and others shelved. For instance, Accor Hotels initially planned to set up a network of 50 hotels in the country by the end of 2012. Currently, it operates nine, the latest being ibis at Mumbai Airport. The others include 3 Novotel, 3 Mercure, 2 ibis. Sofitel, Pullman and Formule1 brands are expected to debut during this year.Mr Michele Casse, senior vice-president (operations), India, Accor Hospitality, said India was not the easiest of countries to be precise about completion dates for large-scale projects.

business-standard

SBI Has No Plan to Launch Fresh Teaser Home Loan

The nation's largest lender State Bank of India, which had introduced the concept of teaser loans in the country, made it clear that it will not be joining its rivals in launching a similar product this time around. "We have no plans as of now to launch any special home loans," Chairman Mr Pratip Chaudhuri said. Reminiscing of the bank's earlier brush with the Reserve Bank in this regard, he said, "We have been through the teaser loan definition. We respect the regulator's stance." The country's largest private lender ICICI Bank had recently launched a dual rate home loan product which offers fixed interest rate to start with after which the loan turns floating. The announcement was followed by the launch of a similar product by mortgage major HDFC too this Monday. Talking of the bank's earlier experience, Mr Chaudhuri said, "We had tried to argue (with the RBI), to reason, but the regulator has a position and already we have provided 2 per cent on our teaser loan portfolio that is Rs 500 crore. I think it was a stiff enough penalty and we would not like to live through it again." Fearing an asset bubble build-up and to contain the impact, the Reserve Bank had increased the provisioning for such assets by a steep fivefold to 2 per cent recently.

news.in.msn

Huge Amount Paid For Stamp Duty for Registration of 151 acre Noida Land

Wave Infrastructure has said it has paid about Rs 375 crore as stamp duty for registration of about 151 acres of land in Noida, which the company had won in the country's biggest land deal for a whopping Rs 6,570 crore. In March this year, Wave Infrastructure had bagged 6.14 lakh sq meter plot for Rs 1.07 lakh per sq meter at Sector-32 and 25A from Noida Development Authority, outbidding real estate firms Amrapali and The 3C Company. "We have deposited about Rs 375 crore as stamp duty for registration of the land," Wave City Executive Director Mr R K Jain said. He said the registration process is expected to be completed soon. However, it could not be ascertained whether the stamp duty paid by the company is an all-time high. It is a mixed-use land where the company would develop housing, commercial complexes, entertainment city and hotels. Jain said the company would launch the project by end of this year but refused to share further details saying that the project was in the planning stage.

Indian Realty News

CCI Charges DLF in another Case of Violation of Market Position, No Penalty this Time

Anti-competitive practices watchdog Competition Commission of India (CCI) has charged real estate major developer DLF of abusing its dominant position in yet another high-profile residential project in Gurgaon, Haryana. In a verdict delivered, CCI clubbed eight complaints filed by the Park Place Residents Association to direct DLF to stop formulating and imposing unfair conditions in its agreements with home buyers and formulate modified conditions in three months. The authority did not order any penalties as it had slapped Rs 630 crore as fine against DLF on a similar complaint two weeks ago. "The commission had imposed a penalty on DLF Ltd. The nature of contravention of provisions is identical in its object and effect in the instant cases and emerges from the position of strength of DLF in the same relevant market. Therefore, it will not be appropriate to separately impose penalty again," said the order. A DLF spokesperson said, "The Company and its subsidiary will be filing an appeal with Competition Appellate Tribunal since the company believed it had a strong case.

Propertyncr

Unitech may Sell Non Core Assets to Repay Debt

Real estate firm Unitech will sell non-core assets such as land, IT parks and SEZs to pay off debt, which is at Rs 5,300 crore. In an interview, Unitech Managing Director Mr Ajay Chandra said the company, India's second biggest real estate company after DLF, has also managed to tie up debt of about Rs 550 crore from two public sector banks in the last few months, after facing significant debt financing crisis in the last six months. Mr Chandra said the company would raise Rs 300-400 crore this year by selling land parcels, including one in Tiruvanathapuram . Unitech has also started talks with various PE funds as well as overseas real estate investment trusts to sell its four SEZs and one IT park.

property-system

Real Estate Prices Likely To Go Up

Property prices are likely to escalate due to the Land Acquisition, Rehabilitation and Resettlement Bill introduced in the Parliament. Mr Lalit Kumar Jain, chairman of CREDAI said, "Due to the recent land acquisition bill property prices will further escalate as acquisition of land will become costlier. For private land acquisition it is based on negotiation and introduction of rehabilitation clause was not needed as it will create more hassle. Also the land stock will be reduced." Mr Niranjan Hiranandani of Hiranandani Developers said, "One way the land acquisition bill is very good agitation related to land acquisition across the country will be put to rest. Bu the clause of rehabilitation even in the case of private land acquisition will lead t misuse and corruption. W are negotiating and paying as per market prices then why should the question o rehabilitation and resettlement arise." Hiranandani said another clause introduced that if a land is acquired for some purpose and not fully utilized by the developer then the government will take 80 per cent of the land is not correct as there may be several reasons for not utilising it. He added that increase in property prices is inevitable as land acquisition is likely to become costlier.

mydigitalfc

Brigade Set To Raise Rs 600 Crore For Hospitality, Residential Projects

Brigade Enterprises, a Bangalore-based real estate developer, is planning to raise Rs 600 crore through the private equity (PE) route for hospitality and residential projects. The listed entity plans to raise Rs 300 crore each for hospitality and affordable homes (residential) projects. "We are in discussion with a few private equity players to raise money for four hospitality projects spread across cities of Chennai, Mysore and Kerala," Mr M R Jaishankar, Chairman And Managing Director, Brigade Group said. "Another Rs 300 crore is being raised for the 120-acre integrated residential project in Devanahalli to be developed near the international airport in Bangalore," he added. The company is building a hotel for Holiday Inn in Chennai and two hotels in Mysore one on Sayyajirao Road and the other on KRS Road, and a holiday resort in Vaikom near Kochi in Kerala. "The land is in our possession for all the projects now, and we need capital to execute the projects in the next 16-20 months," explained Mr Jaishankar

thehindubusinessline

Zandu Realty signs agreement with Sheth Corporation

Zandu Realty has entered into an agreement with Mumbai-based realty developer Sheth Corporation to construct, build and develop residential housing complex on its land parcel at Dadar in central Mumbai, the former said in a notice to Bombay Stock Exchange. The 2.5 acre land parcel is being developed to commercially exploit the assets and properties of the company in the business of real estate. The said project is expected to be completed within a period of 42 months, the notice said.

Zandu_Realty

Vivanta by Taj Plans Five New Properties This Fiscal

Hospitality major Taj Hotels Resorts and Palaces is planning to open at least five properties under its Vivanta by Taj brand this fiscal. Currently, the group has 21 hotels under this brand that is positioned as an upper-upscale product. "This year, we have opened two properties Srinagar and Bangalore. We have five more properties coming up in Hyderabad, Bekal (North Kerala), Coorg (Karnataka), Coimbatore, and Gurgaon this year and another in Dwarka by 2012-end," said Mr Veer Vijay Singh, Chief Operating Officer, Vivanta.

realtyplusmag

Dubai Worst Performing Property Markets

Dubai real estate was the 9 worst performing market in the world last year, according to a new report by Knight Frank. However, the results of a survey of the 50 biggest property markets in the world also show the rate of decline in Dubai has began to slow. Ireland was named in the report as the worst performing real estate market, with house prices declining 12.9 per cent in the twelve months to June 2011. Dubai showed a decline of 4.7 per cent. The Global House Price Index report found prices fell 6.1 per cent in 2010-11, showing the rate of decline has begun to slow. An analysis of prices for the first six months of the year showed prices have moved slightly into the black and grew 0.1 per cent between January and June 2011. According to Knight Frank, Dubai prices have declined 49.7 per cent overall since the peak in the third quarter of 2008. Top of the league was Hong Kong, with 26.5 per cent annual growth, followed by India (21.3 per cent), Taiwan (12.7 per cent) and Estonia (10.6 per cent). "Asia continues to be the top-performing continent in terms of house price inflation – a position it has held for seven consecutive quarters," said Liam Bailey, head of residential research at Knight Frank.

arabianbusiness

Realty finds its feet in Hyderabad
After prolonged dilemmas and dismay caused by the uncertain political scenario and agitation for separate Telangana, real estate finally appears to have insulated itself on these aspects. And having managed this shift, the construction industry is keeping an eye on the IT sector, where a major part of its fortunes are tied up.

The protracted political developments that in a way had things starting to go wrong for the real estate from the time of the death of the then Chief Minister, Y.S. Rajasekhara Reddy in helicopter crash two years back and a series of agitations, got further aggravated by global recession.

Wait and watch game

Speculators and investors fled the scene and what ensued was the wait-and-watch game with actual buyers holding back purchases amid widespread belief that property prices could come down crashing. The prices did come down but not to the level that was actually anticipated at the buyers-end.Most in the real estate believe that they had grown resilient to the political developments and are now in a position to cater to the market demands. And with speculators staying away on the fringes, its buyers market now and interest reviving in property purchases .

“We are back to where we were few years back, to start looking at the actual buyers and also focussing on the IT professionals who continue to be among major customers for us,” says a builder. Even at present, most concede that they continue to be heavily dependant on customers from the IT and ITES side. “If they slow down, we also slow down and at the same time, if they grow, we too record growth,” he said.

The growth of construction activity during boom time highly revolved around the choice and preference of IT community. There is no denying it, says another builder adding that the city perhaps never recorded the kind of construction that went around IT centres such as Madhapur, Gachibowli, Kondapur, Miyapur and spurred interest in immediate vicinities such as Chandanagar, Nizampet and even ‘remote' areas like Tellapur and Gopannapally in its history.

Builders, who are active with projects and in regular touch with IT employees as potential customers, speak of a slow re-emergence of these young professionals on the property market. They are a tad cautious, yet seem to be making up their mind about investing in property.

More cautious

Lessons have been learnt from the boom time and there is no just ‘rush-in-and-buy-property' that prevailed a few years back. “They are more calculated and in some ways, appear more conscious on not pushing the property prices with indiscriminate buying,” says a builder. The property preference at present hovers around the tag of Rs.40 lakhs which gets reflected in the slow going being registered on properties that are priced higher , it is reasoned. Also the fact that the high-rise properties come with a relatively pricey maintenance costs appears to be affecting the choice. “All those features such as club house, yoga spaces, gymnasiums and fast elevators sound good but the maintenance charges too go up ”.

The monthly maintenance charges going up to Rs.3,000 and in some instances more does come as an extra burden for a consumer who already has home loan instalments to pay. The monthly maintenance charges are coming under scrutiny even while letting out a flat since a tenant apart from a high rental might not be willing to pay higher maintenance fee.

t.lalith singh

The Hindu

Buyer beware
If you're investing in a flat or villa, take care to ensure that the project has received all the clearances it needs. Otherwise, it can end up costing you dearly, says Shanthi Kannan

It came as a rude shock when the Senthils found out that the apartment they had invested in was yet to get the seal of approval from the Directorate of Town and Country Planning (DTCP). The shock came exactly a year after booking the apartment, and meant that construction would certainly be put on hold.
The Senthils had done the booking after seeing a glossy advertisement splashed in the papers. On contacting the builder, they were told that 25 per cent of the flats were already booked. Fearing they would lose out on a good deal and a dream home, the Senthils decided to book a flat.
Now, who is to be blamed? The builder, for not being transparent in explaining the details of the various required approvals to the buyer? Or the buyer, for not checking out the details? Remember the adage, "buyer beware." If one is investing in a home, there is no getting away from the fact that one will have to be careful in checking out the required details.
An investor should do a proper check on the price, the location and credentials of the promoters, says R. Kumar, Managing Director of Navins Housing and Properties Ltd. Apart from this, an investor should also make note of the key approvals that a residential apartment needs for its completion (see box).
There are a lot of Senthils in the city today, who go in for pre-booking without checking whether the builder has got an approval or not. In fact, most builders use the funds raised through these pre-bookings for the initial construction of the projects. When investors find that their project is being delayed, it's often too late: getting out is very difficult. They stand to lose, both in terms of money and time. Even if the investor gets out, a new project will end up costing more, says C.Chandran, Managing Director, Chandran Elegant Construction.
But it is not the buyers alone who are to blame. Banks also play an important role in this issue. Banks compete with one another to offer loans. In their keenness to show results, they tend to forget the role they have in checking out the documents. This ends up costing the buyers dearly.
If a builder wants to retain brand reputation, transparency is the key mantra, says Mr. Kumar. Many builders take shortcuts to achieve their sales targets. When a project is announced, these builders create an artificial hype and also increase prices marginally during market slow down. By doing this, they ensure that the existing buyers are retained. "It is better to avoid speculators to keep the real estate industry in good health," feels Mr. Chandran.
The government's role is no less in creating a congenial atmosphere for investors. It should direct the various agencies concerned to be transparent in issuing approval and clearance certificates. The agencies should be made to issue allotment numbers for all the cleared projects, and this information should be made public.
But in the absence of regulatory mechanisms to compel builders and promoters to be fully transparent in their dealings, and easy access to information about which projects have received full clearance, it is necessary for buyers to exercise due diligence; ultimately, it's their money which is at stake.

Puravankara's new projects
Puravankara Projects has capitalised on the existing demand in the housing sector with their new launches in Chennai, Bangalore and Coimbatore, through sale of over seven lakh sq.ft. for the quarter ended June 30, 2011.
According to a release, the company plans to launch a new luxury residential project in CV Raman Nagar, Bangalore, totalling 1.08 million sq.ft and expects to achieve Rs. 500 crore revenue from it.
Approvals are expected for another six million sq.ft across key locations in Chennai and Bangalore for Puravankara projects.
Six projects totalling 12 million sq.ft will be launched after the approvals in Bangalore, Mangalore and Coimbatore under the Provident brand.

The HIndu

New Land Acquisition Bill Impractical: Developers
The proposed bill on land acquisition is not only anti-development but also impractical, feel developers and builders. If the bill is passed and implemented, there cannot be any planned development of townships in the country, said Anil Sharma, CMD of Amrapali Group, who is also vice-president of Confederation of Real Estate Developers' Association of India (Credai). "This bill is kind of one-sided, ill-thought-out doles may sound very altruistic and pro-poor, but these are unsustainable and will kill the goose that lays the golden egg," Credai said.
Indian Realty News

Luxury Juhu Bungalow Sold for Rs 105 Crore
An industrialist is all set to own a super-luxury, 11-storey bungalow apartment building-JVPD1-constructed by Mayfair Housing Pvt Ltd at Juhu, costing Rs 105 crore. Real estate sources say the deal is unique for the simple reason that the building has been purchased by a sole individual. "Considering that apartment sales have dropped so much, the sale of an entire building surprised us, that too, at a reasonable price when one considers the financial turmoil," said a leading broker. Using the incentive parking floor space index, the developer has constructed approximately 50,000 sq ft (as per approved plans by the civic body) on the 700 sq yards ground plus one storey Suman bungalow, named after Broker's wife.
Indian Realty News

Kolkata Based South City Projects to Foray into Sri Lanka Real Estate Market
South City Projects (Kolkata) Ltd — a consortium of six Kolkata-based real estate companies — will enter the real estate sector in Sri Lanka. The company, through its Sri Lankan subsidiary Indocean Developers Pvt Ltd, will invest nearly $100 million (approximately Rs 450 crore) to set up a residential-cum-commercial project in Colombo. The mixed-use project will be funded through a combination of debt and equity.
Indian Realty News

Sale of high-end Chennai homes slumps

There has been a substantial increase in realty prices in the city but sales of high-end apartments have slowed down across the country including Chennai, say experts. Anuj Puri, chairman of realty consultant Jones Lang LaSalle India, said the economy and the residential property sector were presently in a state of uncertainty.
Magic Bricks

Investment in land becomes popular in Chennai

Land is an asset that promises price appreciation and there is a constant demand for it. This is one of the factors that has led to an upward trend of people investing in land in the city.
Magic Bricks

Apartment prices soar in North Chennai

The residential price indices (residex) brought out by the National Housing Bank show that apartment prices in many north Chennai areas shot up substantially between the first and the second quarters this year. Areas that saw a sizeable rise in prices are Dr Radhakrishnan Nagar, Tondiarpet, Narayanappa Garden, Perambur, Choolai and Edapalayam in north Chennai.
Magic Bricks

US Billionaire Sam Zell's Equity International Plans Entry into Indian Real Estate
Billionaire Sam Zell is entering the real estate markets in India and Columbia in the next two weeks as he continues to favor international investments over US property deals.
nrirealtynews

This Diwali New Home Prices May Fall by 10-15 Percent
Real estate companies that have accumulated huge inventories as sales dipped over the last two years, are under pressure from banks and investors to sell in order to generate revenues. Adding to the pressure is a growing mountain of debt, over Rs 38,000 crore for the top 11 builders. "The property market cannot sustain the current price levels. Mumbai and Delhi are the most investor-driven markets. This is where the first crack can come from," says Mr VK Sharma, Chief Executive Officer of LIC Housing Finance, the state-owned insurer which commands a large chunk of the country's home finance market. A 10 pct price correction is likely in Mumbai and Delhi around the festival season, as that is the only way to revive sales, Mr Sharma says.
Indian Realty News

For Registry of Noida Land, Wave Infrastructure Pays about Rs 375 Crore
Wave Infrastructure has paid about Rs 375 crore as stamp duty for registration of about 151 acres of land in Noida, which the company had won in the country's biggest land deal for a whopping Rs 6,570 crore. In March this year, Wave Infrastructure had bagged 6.14 lakh sq meter plot for Rs 1.07 lakh per sq meter at Sector-32 and 25 A from Noida Development Authority, outbidding real estate firms Amrapali and The 3C Company. "We have deposited about Rs 375 crore as stamp duty for registration of the land," Wave City Executive Director Mr R K Jain, said. However, it could not be ascertained whether the stamp duty paid by the company is an all-time high. It is a mixed-use land where the company would develop housing, commercial complexes, entertainment city and hotels. Jain said the company would launch the project by end of this year but refused to share further details saying that the project was in the planning stage. Besides real estate, Wave Group is into entertainment, sugar, liquor and paper businesses.

Property NRC

7 Crore Project Launched by M3M
The project M3M Polo Suites is likely to see an investment of about Rs 130 crore and will be developed inside its luxury housing complex, M3M Golf Estate. The price to be offered is up to Rs 7 crore. The company will develop 72 housing units in 3 towers in the project and sizes will vary between 4,000 sq ft and 5,000 sq ft.
Indian Realty News

Mumbai’s Realty Biggies Back Civic Plan for DC Rules

Piramal Group chairman Mr Ajay Piramal and Godrej Group chairman Mr Adi Godrej said in the past, vested interests secured concessions and extra areas, which flouted norms. "The modified DCRs will minimize subjectivity and discretion in sanctions, reduce time to sanction and bring about much needed transparency and efficiency in the system," they said. Mr Kumar's proposal seeks to curb the rampant malpractices in the building approvals system in the BMC and curtail discretionary powers vested in the municipal commissioner to grant arbitrary concessions to builders. Many developers misuse these concessions and sell spaces, which are not part of the apartment, to buyers. Developers encourage buyers to illegally amalgamate spaces such as flower beds, voids, terraces, into their apartments to make them bigger. Kumar wants to halt this by charging the developer a hefty premium for these spaces.

Property disini

UK House Prices Fall Most In 10 Months


UK house prices fell the most in 10 months in August as a slowing economic recovery threatens to undermine demand, Nationwide Building Society said. The average cost of a home dropped 0.6 per cent to £165,914 ($269,800) from July, the Swindon, England-based customer-owned lender said in an emailed report on Thursday. From a year earlier, values were down 0.4 per cent. While, a shortage in the supply of homes for sale and record-low Bank of England interest rates have supported prices, the housing market is struggling to gain momentum as banks restrict lending and Britons' spending power is eroded by inflation.

builder-implod

8th FICCI International Real Estate Summit 2011

FICCI is organising the eighth edition of “International Real Estate Summit” on 22-23 September 2011 at Hotel Trident, Nariman Point, Mumbai with the theme “Time for a Paradigm Shift in Realty? India and Beyond”. Kumari Selja, Hon’ble Minister of Housing and Urban Poverty Alleviation and Minister of Culture, Government of India will inaugurate the summit and deliver the inaugural address in the august presence of Mr. Prithviraj Chavan, Hon’ble Chief Minister, Government of Maharashtra. Mr. Kamal Nath, Hon’ble Minister of Urban Development, Government of India will also deliver a special address at the summit. The two days summit will witness eminent speakers engaged in enlightening deliberations on various topics like sub-urbanization-the road ahead, real estate rebranding-social change, sustainable and green real estate development, cross-border investments opportunities, REMFs, affordable housing, real estate challenges of this decade & way forward and so on. FICCI jointly with Ernst & Young will also release the annual Knowledge Paper on the sector at the Summit. Visit - www.ficcirealestatesummit.com for details and special rates on delegate fees.

ficcirealestatesummit

US, Euro Debt Crises May Lower Realty Rates

With realty sales already down, the current US and European debt crises have added to the uncertainty. According to real estate consultation firm, Jones Lang LaSalle India, the real estate market is in a confused state. “The debt crises have affected sentiments in the realty market and the coming months would see developers facing a liquidity crunch, affecting their projects,” said Mr Ramesh Nair, Managing Director, (western India). “Many builders, especially those with projects in the suburbs, would be forced to cut their rates by 10-15 per cent,” he added. Mr Pankaj Kapoor, managing director, Liases Foras, said the crises would prove to be beneficial to homebuyers. “Banks will now be stricter while lending and also insist on repayment of loans. The holding capacity of many builders will reduce, forcing them to cut prices to tide over the situation,” said Mr Kapoor.

Hindustantimes

Rs 18,500 Crore Sought For Seven Investment Zones Across Six States

The commerce and industry minister, Mr Anand Sharma, has asked the Cabinet for Rs 18,500 crore to establish seven new investment regions across six States as part of Delhi Mumbai Industrial Corridor (DMIC). The Government has completed the planning of the DMIC region, he said on. "These two steps will help unlock the true potential of manufacturing in India," Sharma added. The $90 billion-DMIC project will be across 1,483 km covering Uttar Pradesh, Delhi, Haryana, Rajasthan, Gujarat and Maharashtra.

Thehindubusinessline

Row over Bill On Property Tax Waiver In Kolkata

Kolkata Municipal Corporation from now will have the power to exempt a portion or the entire property tax on land and buildings used for "sporting activities". The KMC (Amendment) Bill, passed in the assembly, vests this power in the KMC mayor-in-council, despite stiff protest from the opposition. The Bill, however, does not define what "sporting activities" mean. It doesn't specify whether residential complexes that provide such facilities for extra money will get the exemption. Or a club using a park with a bar-cum-restaurant for "sporting activities" would get this facility. An amendment moved by CPM MLA Mr Anisur Rahaman that wanted to specify the exempted land and properties would not be used for commercial purposes, was outvoted by treasury benches. Mayor Sovan Chatterjee reasoned the need for the Bill to exempt small clubs or sports associations who use KMC land for sports-related activities and have lakhs of rupees as tax due. "There is a need to give them relief," he argued.

Kolkatascoop

Egypt promises to Settle Land Disputes with Foreign Firms

The Egyptian government is seeking to settle disputes over the price of land and other issues with about 20 foreign and local investors in a bid to avoid costly arbitration and rebuild confidence in Egypt, an official has said. One of the companies involved, Dubai property developer Damac, said in May it had filed an international arbitration case against Egypt over a land row and the conviction of its chairman and owner, Mr Hussain Sajwani. That case is one of several disputes over the price state land was sold to developers under former President Hosni Mubarak. Many Egyptians accuse Mubarak's government of doing deals that benefitted the rich elite and top officials at the expense of the rest of the country's 80 million people. Several cases claiming land was sold to too cheaply by Mubarak's government were raised in the courts before the president of 30 years was ousted in February but disputes have gathered momentum. Investor confidence has been shaken.

Arabianbusiness

UK Rental Property Demand Keeps Rising

Demand for rental property continues to outpace supply in the UK, according to the latest Residential Lettings Survey, July 2011, from the Royal Institution of Chartered Surveyors. Many people have continued to turn to the lettings sector and as a result of this, rents continued to increase, although the survey indicates that the pace of growth moderated slightly. Some 34 per cent more surveyors reporting a rise in rents rather than a fall compared with 42 per cent in the previous three month period. Significantly, the imbalance between demand and supply is thought likely to persist with the survey results suggesting that further gains in rents are likely over the coming months, RICS said. One of the main drivers of the strong demand for rental property continues to be would be buyers who have moved to the lettings market after struggling to find mortgage finance, or first time buyers unable to meet lenders' deposit requirements. As a result, 25 per cent more chartered surveyors reported a rise in demand than a fall.

Ibtimes

Delhi Monetization Hiccups Hurt GMR Plan
The much-awaited monetization of real estate available with GMR Infrastructure’s Delhi International Airport Ltd is likely to get delayed further. The monetization of the property would now happen beyond fiscal 2014, DNA reported, citing sources. “There is still no clarity on certain regulatory issues apart from the not-so-encouraging property market. However, it is difficult to put a timeline for monetization now,” according to a source tracking the developments. GMR, which has about 250 acre of land available for commercial use at the Delhi airport, has already monetized about 45 acre. The company has been working on a plan to monetize the balance property to raise funds. The company was said to be keen on investing in the ventures coming up on the property in lieu of the land instead of leasing out the land on an outright basis. The delay in monetization is now likely to have a significant impact on the company’s capital expenditure plans since it would now have to look at other modes of funding, including further debt raise.

DNA India