Indian real estate majors including the prominent names of DLF, Reliance Group, Emaar MGF, Indiabulls, Bengal Ambuja Realty, and Paharpur Cooling Towers will soon be seen competing for a prime 5-acre plot on the edge of EM Bypass Expressway. The project will be put to auction by Kolkata Municipal Corporation (KMC).

 

The property is located opposite to the Science City Infotainment Complex and a stone throw distance from the ITC Sonar. It has been offered by KMC on a 99-year long term lease through an auction. The land is likely to be used for development of an exclusive commercial-cum-residential complex.

 

There is a huge demand for commercials in the region. Amidst such a scenario, the plot is on the edge of a prime expressway that passes through fast flourishing New Kolkata on the eastern fringes of the city.

 

The request for proposal (RFP) document containing the terms and conditions of the auction have been purchased by 57 corporates. Potential buyers were required to buy the RFP by 5 October whereas October 15 is the last date for submission of bids.

According to sources, 50% of the proceedings from KMC auction will be used for setting up an art gallery in Rajarhat.

 

Courtesy: Indianrealtynews.com

Bangalore: Seventeen new corridors have emerged as strong investment destinations for investors with different risk appetites, according to the Cushman & Wakefield - GRI India Real Estate Investment Report 2007: ‘India Gaining Momentum’, which was released on Thursday.

 

Hinjewadi (Pune), Manesar (NCR), GST and Sriperumbudur (Chennai), Shamshabad (Hyderabad), Devanahalli (Bangalore), Greater Noida, Panvel and Virar, Rajarhat Thane (Mumbai), Kokapet (Hyderabad), Bidadi (Karnataka), Chakan, Kharadi (Pune), Bantala and Tumkur Road are the corridors that reflect high investment potential.

The exploration of suburban and peripheral developments of major cities as cost-saving and risk-diversification measures is emerging as a vital initiator for analysing the potential investment opportunity within these emerging corridors.

 

Mr Sanjay Dutt and Mr Anurag Mathur, Deputy Managing Directors, Cushman & Wakefield India, say that overburdened infrastructure, rising real estate and operational costs and limited availability of large land parcels have driven corporate and developers to seek alternate locations within their periphery.

 

“These emerging corridors are extensions of tier-I and -II cities that stand to gain from the existing talent pool and benefits from pre-planned infrastructure,” they add. The corridors are rated according to three parameters: sustainability, momentum and economic environment, on the basis of a multi-variable analysis.

 

Courtesy: The Hindu Business Line

RPS Group, one of the fastest growing real estate developers in Faridabad is coming up with a new project, Savana. This residential housing is yet another well designed and developed project for a large section of the society.

Savana group housing is spread over an area of 49.018 acres which is situated in upcoming new Faridabad (Nahar Par). This housing project is strategically developed in terms of convenience and comfort for its inhabitants. The total worth of the project is over Rs 600 crores.

It is just 13 kms away from Kalindi Kunj. The location of this residential complex is absolutely perfect with 85% greenery all around these apartments. Thus, Savana is an upmarket residential project that incorporates an elegant blend of serene environment and the most contemporary building design offering a choice of apartments and pent houses.

The project primarily targets end users who plan to live in this peaceful dwelling and also look forward to buying a property of their own but never dreamt of some years back. Thus, Savana Apartments offer value for money.

Some of the highlights of the project are:

The project has 85%greenery and is 15% concrete. Apart from this, Savana Apartments have a 100% power back up and it is well equipped with the modern facilities of clubs, swimming pool and sports complexes. An additional feature of this residential complex is that it provides both open and covered parking to its residents.

But adding to the glory of these apartments is undoubtedly its soothing landscape and water bodies. Also, the residential complex has roof top solar water heaters attached to it. Savana also has meditation halls, schools and other commercial complexes which proves to advantageous for the families.

Rakesh Gupta, Managing Director- RPS Group, elatedly shared, “Savana Group Housing has been preferred by the masses as a result of its geographical and infrastructural benefits. Both commercial and residential scenario in Faridabad has developed at a rapid pace.

The locational advantage of Savana Apartments has made it a most sought after destination having well connected roads and proximity to schools of international repute, hospitals and many professional colleges. It envisages providing quality lifestyle to its people in the form of luxury apartments and penthouses. This mammoth project is no less a township that will provide about 2500 flats and 56 pent houses and it of course has landscaped greens.”

The size of the apartments flats would vary from 1250 sq feet to 2360 sq feet and the costing is Rs.1900 & 2500 per sq feet. Whereas, in case of pent houses which are 56 in number and is spread over an area ranging from 2360 sq feet to 4950 sq feet.

With the mounting interest of the new families and rise of new job opportunities in Faridabad, the company is bound to develop more townships in the years to come.

Gurgaon will see 10,000 new luxury flats over the next two years. This is regarding new residential projects which are scheduled to come up in the city soon.

Starting with Indian real estate giant DLF, it is all set to develop another residential project ‘Belaire’. According to Rs 7,500 a square foot, an apartment in the complex will cost around Rs 3 crore.

Close on heels is Emaar MGF which has planned to come up with its mega residential project ‘Palm Spring’ next to the DLF project. It is priced at Rs 7,200 a square foot and Parsvnath ‘Exotica’ is under construction on its adjacent plot, priced at Rs 6,500 per square foot.

Such luxury apartments, which cost Rs 1.5 crore or more, will include around 30% of residential space in Gurgaon by 2010.

With things planned in such a way, the city will see 10,000 luxury homes, up from 1500 units in 2006. That’s 300 units added each month.

The average absorption will not go over 200 units. Of these, the demand for high end homes over Rs 1 crore is less than 50, says Ankur Srivastava, MD, DTZ.

Gurgaon will see an oversupply of 300% in the next two years. The scenario is likely to push the property prices in the city. There has already been a price correction of up to 25% in the luxury homes segment.

Courtesy: Indianrealtynews

Real estate solutions provider Propmart, which provides both online and offline realty solutions, has launched operations in Chennai. “Propmart has been periodically conducting surveys and all surveys have revealed that the Chennai market has been growing leaps and bounds in the last 3 to 4 years. This prompted us to enter Chennai,” R Balaji, chief executive officer of Propmart, said on Thursday.

The company plans to provide the vital consultancy link between builders and customers in the city. “Propmart’s core areas of operation are both B2B as well as B2C. For B2B, Propmart acts as a marketing process outsourcing (MPO) company, and for B2C we act as a link between the end buyers, sellers and the builders,” Balaji said.

Bangalore-headquartered Propmart has operations in major cities like Delhi, Mumbai, Pune, Chennai, Kochi, Mysore and Coimbatore.

Propmart has been offering its MPO facilities services in property verification, dealing with local authorities like municipal corporations, electricity boards and water authority. This apart, Propmart also assists in securing a bank loan for purchase of property, besides getting the property registered.

Cosmopolitan Chennai has emerged as one of the growing centres for IT, BPO and KPO-led businesses and is witnessing a strong mall culture as well as retail boom. As an impact of all these factors, the real estate sector is riding high on a strong economy and the commercial real estate is being driven like never before.

In spite of the rise in housing finance rates, the real estate market in Chennai is booming and is expected to maintain the same for the next two quarters, Balaji opined.

Propmart notes that throughout the last two years, the real estate market witnessed almost 20-40 per cent increase in capital value coupled with tremendous growth in sale-purchase and leasing activities. With constant demand for quality space from both the residential and commercial sectors, real estate activity in the city is more than 3.5 million sft annually, the company claims.

The Chennai real estate investment market has witnessed significant growth due to constant demand for quality space, both residential and commercial, after many years.

Awareness about investments and affordability is on the rise among individual double income families, and second homes are being considered as good investment option in the city, Balaji added.

Courtesy: Business Standard

Real Estate giant DLF is now planning to build its biggest residential project in the outskirts of Bangalore. This project is estimated to involve an investment of Rs. 60,000 Cr. The state-of-the-art project will be thrice of the size of DLF City in Gurgaon.

The “Bidadi Knowledge Park” will be developed across over 9,178 acre of Bidadi, which is 30 km from Bangalore. Bidadi is on the Bangalore-Mysore expressway and the upcoming intercity infrastructure corridor. The development charges for per acre of this self contained township will be over Rs 57 Lakh, and it is scheduled to be completed within 5 years. California-based Berkley and design firm Calthorpe Associates will plan the project. This project is termed as biggest endeavor of any real estate player so far.

A spokesperson of Karnataka Government, Basavaraj Horatti informed, “The tenders have been approved for the Bidadi project. The terms and conditions are that per acre the development charges will be Rs 57,50,000, and it should be completed in five years.”

The project will be for housing and commercial constructions and the cost of the investment is estimated upto Rs. 60,000 cr including Rs 3,600 crore for the land and the investment would come from internal resources of the two partners and private equity at project-level. The Karnataka government has awarded the land it owns while the remaining area would be acquired from private parties with the help of the state.

This township will be a self-contained township and will be developed on a walk-to-work theme. It will comprises of multiplexes, hotels, shopping malls and service apartments. The project will be a 50:50 joint venture between Dubai-based Limitless Holdings, a sister company of Nakheel and a part of the diversified Dubai World Group and DLF. DLF has recently entered stock markets with its IPO. The company valuations have seen a decent rise. DLF is among the top companies in India in terms of net worth.

The project was awarded to DLF, following a global tender issued by the Bangalore Metropolitan Regional Development Authority (BMRDA). BMRDA is also considering an expressway to connect the township to the new international airport at Devanahalli. The township is likely to have a dedicated metro rail connection to Bangalore city. The road to Mysore will now also be the road to a new Bangalore.

DLF managed to get the project allotted by Bangalore Metropolitan Regional Development Authority for which nearly 100 companies had filed applications. The project will offer world class living and business environment.

Courtesy: Indiarealestateblog

Serving as a savior, Section 54 of the Income Tax Act exempts those capital gains which are invested in a residential property/house within a year before to two years after the sale. In case, an investor wants to build a house, the time limit is increased to within three years of the date of sale.

The exemption would be proportional if only a part of the capital gain gets utilized and the excess will be liable to tax. NRIs can benefit from the rule as it is not mentioned that the new house purchased should be located in India. This gives NRIs the liberty to purchase a house in their host country abroad and yet save tax here.

However, this is simply a theoretical possibility based on a plain reading of the law. There are possibilities of extending the exemption offered by Sec 54 to a property bought abroad, says Income Tax Tribunal.

The Mumbai Tribunal verdict in case of Mrs. Prema P Shah vs ITO 282ITR (AT) 211 [2006] is critical to shed the light on the law. Outlined below are the facts of the case:

Mrs. Prema P Shah is a NRI, who sold her house purchased in 1983 for Rs 6 million in 1992. She bought another property in London on 150 years lease, and claimed exemption u/s 54 of the IT Act.

The A.O. did not permit the claim because of following reasons:

The assessee had only bought the tenancy right.

Only the individual investing in India can claim the exemption.

The sale proceedings were not used for buying the residential property.

The argument was rejected by the Tribunal based on the facts of the case.

In the UK, property is granted long term leases rather than being allowed to buy. In the given case, the residential property was taken on a lease of 150 years, which clearly is in perpetuity and the assessee was the property owner.

The same amount of capital gains may or may not be used to purchase the property. Indeed, the assessee is allowed to buy it even on mortgage and is liable to exemption if it complies with the conditions mentioned in Sec. 54. For that reason, the borrower instantly becomes the property owner of properties purchased through mortgage.

Now, NRIs can think about buying property abroad and claiming tax benefits in India.

Courtesy: : Indianrealtynews

Whether it is Bangalore or Chennai, and irrespective of the direction or alternate routes motorists utilize to enter these cities, they are resigned to spending over one hour just to move from the borders to the residential colonies located within the cities.

So if you have a job that entails frequent travel between these cities, it would make terrific sense to reside just outside the metropolitan area, especially if your office is also around thereabouts. Maybe Hosur for Bangalore and Poonamalle, Porur, or Vandalur for Chennai. So who is building houses in Vandalur now?

GRA International Bizkom Limited a unit of the Ganapati group which has been primarily involved in the businesses of leather exports, steel smelting & manufacturing, commodity trading and construction since 1984, has built up a reputation for reliability and trust, GRA has been constructing quality homes at affordable prices in prime locations in Chennai and is now constructing and marketing Vandalur Park, a unique residential Colony on a prime property owned by group company, Ganapati Leather Products. The housing colony will provide space for departmental stores, clinics, a pharmacy and various other retail shops.

The location-wise advantages of land situated on the main GST Road, supported by bus stand, railway station, colleges, schools and yet within the CMDA Chennai jurisdiction.

It is but a short drive from Tambaram, and has the best possible infrastructure in the form of well constructed wide roads linked to a four-lane national highway, drainage treatment plant and water supply system. The site is within walking distance behind the Urappakkam Railway Station and is so large that it extends up to the next parallel road on the opposite sides.

The specifications reveal that only thirty-five percent of the area is covered whereas as much as sixty-five percent is left as open space. The architect has displayed a very pleasant atmosphere replete with well designed landscape, avenue trees and a children’s play ground of round 15,600 sq ft.

In keeping with contemporary trends an excellent drainage system enhanced by a sewage treatment plant and ground water will be recharged with a rainwater harvesting system. The entire housing colony is secured by a compound wall with round the clock security ensures peace of mind.

The bus stand and Railway Station are located along the boundary walls. Outside the compound are numerous schools and engineering colleges and not far away is the Vandalur Zoo. In the other direction, 2 kilometres away is Perungalathur - GST Road, the Shriram Gateway, SEZ, IT Park, a shopping mall and Hotels. 12 KM Meenambakkam Airport

Demand for property has slowed down by as much as 30 per cent in lower and middle-income housing in Mumbai suburbs following the series of interest rate hikes since January that have seen lending rates rise 125 to 200 basis points this year, raising anticipation of a fall in prices.

Real-estate consultants and housing finance companies say the number of deals has dropped in suburbs such as Bhandup, Malad, Vasai, Kharghar and Panvel. “We have seen a slump of 30 per cent in the number of enquiries and sales in these areas. The slowdown in property registrations also indicates this trend,” said Pranay Vakil, chairman of realty consultant and agents Knight Frank India.

“The maximum pinch can be seen in the Rs 15 lakh to Rs 50 lakh range in the suburbs,” he added. This price range tends to be sensitive to rising lending rates. Confirming the trend, Rajesh Mehta, chairman, Raha Realtors, said half the registrations were taking place for rental accommodation rather than for property transactions, which used to account for 60 to 70 per cent of registrations.

The slowdown in demand has had a marginal impact in prices so far. Rajeev Sabharwal, head, retail assets, ICICI Bank, one of the largest private-sector lenders of housing loans, said though developers were not offering major price cuts, minor discounts could follow soon.

“Even though builders do not offer price cuts openly, they give discounts between 5 and 10 per cent when they come to the negotiating table,” added Mehta.

Some areas, however, have seen a drop. “Prices have already dropped 10 to 15 per cent in places like Kharghar and Panvel, a 1.5 to two-hour drive from the business district Nariman Point,” said Sanjay Dutt, deputy managing director of realty consultant and agent Cushman & Wakefield. He expected the stagnation to continue for another couple of months.

Part of the reason for the relatively minor fall in prices is the sharp jump in property prices over the past year. In Kharghar and Panvel, for instance, Dutt said prices had risen 50 to 70 per cent in the past year “which was way ahead of time.”

“Property prices have gone up 50 to 100 per cent in the last one year in Bhandup, Vasai, Malad and other areas that are in a 50 km radius of Nariman Point” added Mehta.

The scene, however, is different in south Mumbai, where few new projects have come up in the recent years and prices have jumped 30 to 40 per cent, peaking to Rs 35,000 a square foot. Vakil of Knight Frank said apartment prices in south Mumbai have doubled in the last two years as sellers wait for higher prices before they sell their properties.

“There is a shortage of ready-to-use luxury apartments in South Mumbai. Non-resident Indians are also scouting for properties in these areas.

Today we have at least 15 to 20 people all wanting flats of more than Rs 6 crore to Rs 7 crore each, so prices are going up every 15 days,” he added. Property prices have gone up 50 to 100 per cent in the last one year in Bhandup.

Mivtach Shamir Holdings Ltd. is an Israel-based investment company. Mivtach Shamir invests in industry, technology, communications and real estate companies, including Tnuva, Tefron, Solbar and Gilat. Several weeks ago, the company completed a private offering of a series of non-negotiable bonds at NIS 263.8 million (about $64.43 million) to institutional investors.

The firm has purchased 275 acres of plot in the city and plans to build 24 million sq ft of office space, hotels and commercial centers on the site with Indian partners and will own 32 per cent shares in the project. Mr. Meir Shamir, Chairman and CEO of Mivtach Shamir, said the company “continued to tighten its hold of investments in Indian infrastructure and real estate”.

Mivtach Shamir did not disclose how much the project would cost to build or what the expected sales proceeds are. This is not Mivtach Shamir’s first investment in India. Two months ago the company announced that it would invest $15 million in the Tower Vision Company, which builds and operates cellular antennas in India.

It also announced that it would invest up to $25 million in the INMB Company, which plans and builds hotels in the business sector across India.

Source: Indiarealestateblog