DLF made a bid of Rs 26.07 crore an acre for the 26-acre property at Taramani and take the total bid amount to Rs 660 crore in the closed bids called by Tamil Nadu Industrial Development Corporation. DLF bid at a rate of Rs 5,757 per sq ft for the property including 11.32 lakh sq ft. Other real estate developers bidding for the property were Ascendas, RMZ Corp, and Prestige Group. The property is located adjacent to American International School off the IT corridor.

The land will see over 2.6 million sq ft built up space. There was a stiffer competition among the developers as the project is likely to be one of the significant landmarks in Chennai. Since monthly IT space lease rents in the area hover around Rs 47-50 per sq ft, the bid is believed to be an attractive investment. It could be well covered under the project with cost including the land costing Rs 1,500 crore.

The project is likely to strengthen Chennai’s position as a centre for IT/ITes companies. With a high proliferation of IT companies in Chennai, demand for commercial properties or rental properties are likely to increase.

Kolkata: Real estate developers in Mumbai plan to convert their not-so-successful retail malls into commercial office buildings due to high demand for office space from the IT/ ITES, financial services and telecom sectors.

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.”

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.

Rudrapur’s ascendance as a star industrial hub has been prompted by economic, demographic and geographic factors but Centre’s tax holiday for industries is expected to transmute it into an urban paradise

The sylvan surroundings of Rudrapur, a sub-division of Udham Singh Nagar, better known as ‘Gateway to Kumaon Hills’, echoes with the sounds of construction these days. Penthouses against the backdrop of Kumaon hills, ultra-modern luxury apartments by glassy lakes, villas among lush green parks, are just some of the dreams builders have been weaving to lure potential buyers.

This Uttaranchal town in the plains is emerging as one of the fastest growing industrial cities in the country and a premier business centre with big Indian and multinational companies of the likes of Nestle, Tata, Britannia, Dabur, Honda, Bajaj, Parle, Jindal, Mahindra & Mahindra and Voltas to name a few, investing Rs 7000 crore. With around 400 companies expected to start operations in the next one year alone, Rudrapur is poised to be the new industrial hub of India.

Realising the immense market potential, pan-Indian realtors are descending in droves to acquire land that has become scarce and exorbitantly priced. Many big players have already started to work on integrated townships, transforming quiet pockets into beehives of construction activity.

Rudrapur has emerged as the economic capital of Uttaranchal. After being declared a Special Economic Zone (SEZ), more than 500 industries have come up here.

It is held by many that the rush in real estate developments is primarily the result of tax and economic incentives announced by the Central and state governments to promote industrial growth. The latest scramble has been triggered by the declaration of Rudrapur as a non-tariff area for central excise, custom and sales tax duties for a period of 10 years. This span may also be extended by the Central government. This has prompted industry players to set up big plants and the subsequent settling of numerous corporates. Companies that begin production before a cut-off date get a 10-year excise duty exemption, five-year full income tax break and reduced levels for the next five years. The state government has, as a result, witnessed hectic activity on the industrial front with a host of companies, from the automobile, pharma and FMCG sectors, setting up facilities here. The attractive tax breaks have apparently worked for Uttaranchal, which received investments of around Rs 20,000 crore in the past three years, prompting it to scout for fresh land to house new industries.

Arvinder Singh, CMD of Alliance Nirmaan Limited, a leading developer which pioneered real estate development at Rudrapur and in Uttaranchal, points out, “The transfer of 5000 acres of GB Pant University land to State Industrial Development Corporation of Uttaranchal Ltd (SIDCUL) for development of industrial complex has been a milestone and Centre’s tax breaks coupled with the cooperative approach of the state government have triggered industrial growth in Rudrapur.”

Rohtas Goel, MD, Omaxe Construction Ltd which is coming up with its integrated township Omaxe Riviera, asserts, “The tax breaks have facilitated the overall economic development of Rudrapur. It has attracted several corporates to open their offices eventually triggering a rise in demand for housing and commercial complexes.”

Infrastructure has been a big draw at Rudrapur. Partho Kunar, VP (Marketing), Alliance Nirmaan Ltd, explains, “Unlike most of the towns and cities in India, infrastructure is not a botheration. There is no dearth of electricity or water. Moreover, electricity rates are the lowest in the state and you can get water by digging not even five feet.” To further consolidate its position on power, the government has planned 10 power projects at a cost of Rs 800 crore.

Connectivity is good as the town is situated on the Delhi-Nainital Highway (NH 74) and Khatema-Panipat Highway (NH 87). Four-laning of road from Bareilly to Moradabad is under way. The Pantnagar airport in the vicinity is a big plus. The airport is being renovated to enable Boeings and ATRs to land from next year. The government is also working on improving the infrastructure and connectivity especially around the industrial belts.

Literacy rate at Uttaranchal is very high. This bodes well for industrial growth because educated workforce is an important requirement for industries to prosper. Government policies have been economy-friendly marked by fewer technical snags and less bureaucratic hassles.

Economic factors apart, there is a demographic factor that has contributed to the demand for real estate: the presence of a strong Punjabi community, many of who live abroad. These NRIs have shown a lot of interest in the upcoming high-end real estate products.

Looking to safeguard your future but doesn’t know the way or medium? If you fall into this category then this is the time to invest your money in real estate property in India. Real estate India is one field in which is catching a lot of eye balls and also attracting various foreign investors. With liberalized Indian government policies more and more foreign investors are gearing up to invest in real estate property in India. India is one country which boasts vast geographical expansion and that’s the reason why many people are now targeting Indian properties.

Investing in real estate property in India is the safest bet as experts have predicted that in coming future Indian property will be riding high and be the most profit reaping medium. The main highlight of this boom is that the Indian real estate development is not only restricted to metropolitan cities such as Delhi, Mumbai and Kolkata but it is spreading in small Indian cities too such as Indore, Pune, Kanpur and even Noida. This shows that Indian real estate development is going in the right direction along with the full-fledged development.

According to the property experts, investing in real estate property in India will strengthen your financial position and also reap whooping benefits. To improve and attract more investors to invest in real estate property in India, Indian government has taken various transparent steps so that no one is at loss. If we look at the current trend you can say that having an Indian property in your kitty will surely reap profits for you in the future. The main reason behind this is that every year there is a rise in the property prices and also Indian property provides you the diversity.

That’s why real estate property in India has emerged as a keen competitor in the global real estate market. India offers every kind of property whether it is seaside property or property in a hill station or even a magnificent villa in Kodaikanal or Mahabaleshwar. In short, you name it and India offers it. Thus, if you wish to reap benefits and profits with your investment then investing in real estate property in India is the wisest choice.

Taneja Developers has announced the launch of TDI Greens, an integrated, self- sufficient, international residential township in Sector 16, Sonepat. Adjacent to NH – I and just 15 minutes drive from the north Delhi border, the township has been conceptualized to offer an international living experience at an affordable price to those in north and north-west Delhi, including colonies like Rohini, Pitampura, Shalimar Bagh, Ashok Vihar, Model Town, Pashchim Vihar, and surrounding cities like Rohtak and Panipat.

Spread over an area of 125 acres, TDI Greens will take care of shopping, entertainment, education, and health care needs of the residents. It is going to have well lit roads, open spaces with excellent landscaping, exquisitely designed shopping-cum-community centre, club and recreational facilities, play school, primary school, and state-of-the-art hospital and health care facilities. The security system and maintenance facilities conform to global norms. The total project cost is approximately Rs 100 crores, and work is expected to be completed by the year 2007

Increasing interest rates on home loans, oversupply in development phase, and implementation of the project are some temporary dampeners for domestic property in India market which are further fuelled by strong fundamentals.

According to Prabhudas Lilladhar, a leading equity broking house in India, there are long-term drivers too which include good GDP growth, increasing affordability, conducive demographics, rapid urbanization, and increasing mortgage penetration, besides an improving regulatory framework.

The National Housing Bank drives the shortage of residential property at 45 million units during the 11th Five Year Plan. The urban housing shortage is determined at 22 million units, which clearly indicates towards an annual demand of 4.5 million units.

The commercial property market in India is largely benefited by a high proliferation of IT companies which are accountable for 60-70 per cent of the total demand.

As per the data showcased by Nasscom, the IT/ITes sector employs 1.63 million people. The number will grow up to 0.67 million professional by 2010. Staying in step with the demand requirements, this would involve 95-110 million sq ft by 2010.

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

Indian real estate is making rapid strides on the back of country’s surging economy. The growing developments are also giving a boost to the Indian job market which has certainly been poised for greater dynamism after a high proliferation of IT companies.

According to a quarterly survey conducted by Manpower Inc., a global HR consultancy firm, the employer spectrum including the real estate, retail, and manufacturing has informed to have experienced a rise in their hiring activities.

With employers drafting and executing business strategies, hiring activity is projected to get an increased momentum in this quarter. The optimism of Indian employers is a true barometer of the development taking across India.

Job sector in India has been primarily pushed by the factors such as finance, insurance, and property market. A large number of employers say to have an increase in their hiring plans.

‘The increased hiring in the services sector is a reflection of the role of this sector in India’s GDP growth. Also, the capital and financial health of the country today is fuelling the demand in the finance, real estate and retail sectors, which assures a plethora of opportunities for job seekers in the next three months,’ Basu added.

A surge in hiring plans clearly shows an increase in India’s GDP growth. In addition, the financial development of India is fuelling the demand in finance, real estate and retail sectors and ensures an availability of large pool of jobs in the next three months.

The markets in India, be it a metro or a smaller city, have been buzzing with real estate activity. Residential developments, malls, commercial centers, IT hubs, FDI, real estate mutual funds, among others are commonly heard terms in almost all the cities across India. It is whole new generation

  After the tremendous success of Jobs, Hotels and Matrimonial websites in India. How can Real Estate Market remain untouched. If you have a property to sell and are planning to upgrade or move to another location, now is the good time to do…

Zameen-Zaidad.com, one of the India-s largest real estate portal and adopts secure registration methods, which attracts only serious users and the technology employed gives prime importance to user privacy. In this website one can advertise a property and also search for a property on the basis of type, price, range and location. The search has been organised after assessing the specific requirements of the commercial real estate sector.

According to a survey report, real estate-related Internet traffic reached around 22 million users in April 2005, a 26 percent increase from November 2004. And this is the segment that zameen-zaidad.com intends to tap. Zameen-Zaidad.com aims to become India’s premier property portal that meets every aspect of the consumer’s needs in the real estate industry and will be a one - stop source for buying, selling or leasing any type of property anywhere in the country.

During nest 5 years will be resourceful for Real Estate Investors. Indian real estate market is booming. $8000 Million will be invested in India before common wealth games. Governments are making best strategies to motivate investors but Real Estate Portals like http://www.Zameen-Zaidad.com will definitely play an important role.

A good number of housing projects and townships are proposed to come up at Bhiwadi, Dharuhera, Rewari and Alwar which lie towards the south-west of NCR. But these places lack adequate physical and social infrastructure and so end-user purchase has little scope. The majority of the projects are in launch stage with flats in the price ranges of Rs. 1,350-Rs. 1,950 psf. Residential plots are available at Rs. 1,550 psf in Prasvnath City, Dharuhera, Rewari, however, has minimal supply coming up due to physical amenities as well as competition from stronger markets like Gurgaon and Manesar in the vicinity.

Finally, Sonepat, Kundli and Panipat in the NCR’s north-west stretch have a good presence of business groups and possess a sound potential for real estate growth. The region will account for 6% (11.12 million sq.ft ) of the total supply by 2009-10. Projects such as Ansal API’s sunshine country in Kundli fall in the Grade A segment. Delhi Master Plan 2010, has recommended provision of extra FAR for existing plots and building of 75,000 new housing units every year, laid stress on the housing needs of the urban poor and prescribed constructing residential estates on farmlands in north and south Delhi.

On the other hand, because of high inflation, interest rate hike and SEBI’s stand on land bank valuation, there has been, says Knight Frank Research, a correction of nearly 15% on an average in the capital values of land across the NCR. This is due to a decline in the number of buyers.

The RBI measures have squeezed the realty market from the demand and supply side, but happily curbed the speculative demand in the market as well. And with the end-user driven demand not been affected much,

NCR remains a formidable real estate destination.