India has been ranked as the 16th most expensive retail ‘high street destination’ in the world by a latest report. According to the report ‘Main Streets Across the World (MSATW) 2007? by real estate consultants firm Cushman & Wakefield, Khan Market in New Delhi is the most expensive retail destination in the country with rentals of Rs 950 per sq ft per month in the second quarter. It witnessed an annual growth of 35.7 per cent over the same period last year.

“Khan Market is the biggest riser in the ranking of the world’s most expensive shopping locations in terms of retail rents, moving up eight places from last years 24th position,” the report said.

New York’s Fifth Avenue retained its title as the world’s most expensive shopping destination followed by Hong Kong’s Causeway Bay and Avenue des Champs Elysees in Paris.

“Retail is going through a revolution in India, although a part of the increase in rents is due to lack of high-quality space in the right location,” Cushman & Wakefield India national head (retail) Rajneesh Mahajan said.

The report said India also figured among the world’s top 10 locations that witnessed highest rental increase in local currency terms.

Connaught Place in Delhi is the highest gainer in Asia and second only to Chicago’s East Oak Street across the world, with an annual growth of 87.5 per cent.

Kemp’s Corner in Mumbai has also witnessed high rental growth of 78.2 per cent, making it the fourth highest riser of rental growth.

Greater Kailash in Delhi and Fort/Fountain and Colaba in Mumbai were also among the highest rent rises recorded with increase of 57.1 per cent, 55.2 per cent and 51.1 per cent respectively.

In the period, the rental in the Connaught Place was Rs 750 per sq ft a month, while the same for Kemps Corner was Rs 490 per sq ft per month, the report added.

Source: http://inhome.rediff.com

Apartment spread cross 6,500 sq ft with private parking bays on each floor, exclusive elevator for each apartment, ultra-luxurious amenities and a manicured garden thrown in. The building is Ellora Castle, the price of each apartment is Rs 6 crore and the location is Palm Beach Road of Navi Mumbai.

Ellora Castle is just one among the 119 stalls at the ongoing Haute Property exhibition in Vashi (November 16 to 19 at the exhibition grounds outside Vashi station), which is mainly targeted towards homebuyers from the Mumbai metropolis.

“From being a low-cost housing destination, Navi Mumbai is now the preferred option for many high net worth individuals because of the quality of life it has to offer,” says Bhupendra Shah of Bahamian Group, part of the exhibition’s organising committee.

Till a few years ago, Navi Mumbai promised affordable housing and a lot of people shifted from Mumbai to bigger flats in the satellite city. Today, the real estate prices in areas of Navi Mumbai like Vashi and Palm Beach are on par with or even higher than the suburbs of Mumbai. For those with large families, Navi Mumbai is the one of the few places where one can afford a palatial penthouse or a four-bedroom flat with a view.

For the others, most nodes of Navi Mumbai offer row houses, independent houses and flats at affordable rates. Shopping malls, wide roads, good schools, sprawling markets and good connectivity are the key factors that make Navi Mumbai an attractive housing option.

“The infrastructure of Navi Mumbai is improving with each passing month,” says Nerul-resident Nar HERE IS UR TOOesh Sawant. In the last two months, three major malls have been inaugurated in the city, giving the local residents lot to choose from for the weekend outing. Educational facilities are also a major reason for people preferring Navi Mumbai. There are about 10 engineering colleges in Navi Mumbai, apart from medical, degree and catering colleges and institutes.

Prakash D’Mello, who moved to Koparkhairne from Chembur, reminisces, “We bought this house about 11 years ago and have seen the place develop. What I like about Navi Mumbai are the educational facilities. They are far better from most schools of Mumbai and affordable too.” His wife Sujata adds, “The bus depot is just a couple of minutes away that connects us to the rest of the city and Mumbai.

Navi Mumbai is also quite spacious with with a lot of greenery around. This is what we call luxury” While educational facilities are the preference of some people, others prefer the peace that Navi Mumbai offers. Rakesh Sharma, resident of Belapur is very happy with his house in the Artists Colony “With the extra FSI, our house is much bigger now. For me the serene surroundings itself are inspiring and I sometimes wonder how people live surrounded by busy roads and continuous traffic in Mumbai.”

Source: Hindustan Time

With a growth rate of 30 per cent and projected figures of 90 billion US dollars, by 2015, it can be safely said that the real estate sector in India is booming.

India is being acknowledged as the one of the fastest growing economies in the world and in this current economic scenario, real estate has emerged as one of the most appealing investment areas for domestic as well as foreign investors. And this high growth curve in the real estate sector owes some credit to a booming economy and liberalised Foreign Direct Investments (FDI) regime in the real estate sector.

In March 2005 the government of India amended existing norms to allow 100 per cent FDI in the construction business. This liberalisation act cleared the path for foreign investment, to meet the demand of development of the commercial and residential real estate sectors. As per the new rules, the minimum land area for development by foreign investors was lowered from the earlier floor of 100 acres to 25 acres.

Also, the economy continues to grow rapidly, hitting 9.3 per cent in the first quarter of 2007, following the 9.4 per cent growth recorded for the whole of last year. Then there’s the rapidly expanding service sector, FDI growth, a surge in exports, rising global competitiveness and increasing domestic demand, all contributing to a strong economy. This pace of economic growth shows no signs of slowing.

With forecasts of economic growth rates of at least six to seven per cent per year, India is expected to become the world’s third largest economy (measured in purchasing power parity) by 2010. With the fundamentals of the Indian, economy apparently sound, and prospects for continued growth very good, the real estate industry can only flourish.

One of the main propellers of this growth is also the rapid urbanisation of Indian cities. The Indian government has estimated a shortfall of 20 million accommodation units. This quantum of demand, coupled with a short supply, ensures that there’s a great requirement for residential realty. This in turn translates into great opportunities for real estate companies providing quality township projects.

It is also estimated that India will need 475 billion dollars in the next five years to upgrade its infrastructure. This level of investment opportunity hasn’t gone unnoticed by global investors and has drawn the heavy weight investors to India. Sunil Gomes, director of development real estate, Istithmar, shares how India maybe a high risk market for some but it’s also a high return one.

But the real story lies in the deeper changes within Indian society, that are expected to have an even greater impact on real estate. India has a young profile today. Half of its population is under 25 years and the country’s median age is 24 years (2005) compared to 33 in China and 43 in Japan. The country is urbanising at a rapid rate of 2.5 per cent per year.

The number of cities over one million is expected to double from 35 in 2001 to 70 cities by 2025. Mumbai and Delhi is projected to be the world’s second and third largest cities by 2015. Tier 2 cities like Pune, Hyderabad and Chennai are becoming increasingly important in this scenario.

However, Tier 3 cities like Mysore, Mangalore, Kochi still lack liquidity. India’s large population is now being viewed as one of its key strengths, especially a young and urbanising population. More importantly, this young customer base has an evergrowing demand for products and services and is providing massive labour market opportunities as well. This new brand of consumer’s rising disposable incomes is also being generated towards lifestyle products, real estate included.

The trend towards urbanisation is part of a long-term structural change in the Indian economy. Where now, less than 30 per cent of the population live in cities, that figure is expected to double by 2030. While India is still considered under performed as compared to China, as far as investments are concerned, it’s also interesting to note that unlike in China, higher FDI inflows are the effect, and not the cause, of high growth rate in India.

The obvious inference is that while policy, institutions, incentives and regulations do matter, it is the perception about investment viability that is the most significant determinant of FDI. India, attempted development of infrastructure, simplification of procedures and a gradual change of mindset, which has led to its increased attractiveness to investors.

The Indian real estate market is expected to have access to about $10 billion (Rs 41,000 crore) in private equity (PE) funds this year, which should help cash-strapped developers overcome conservative lending by banks, stricter rules for placements before share offers and tougher guidelines for overseas borrowings.

All this activity has also encouraged several large financial firms and private equity funds to launch exclusive funds, targeting the Indian real estate sector. Besides increasing professionalism in the sector, it would bring in advanced technology and help in the creation of healthy and competitive market environment for both, domestic and foreign investors.

Also, the entry of Real Estate Mutual Funds (REMFs) or Real Estate Investment Trusts (REITs) will definitely ensure more availability of funds to the developers and faster growth of real estate sector, according to industry experts.

Source: The Economic Times

Bangalore’s transformation, from being a pensioner’s paradise to a bustling metropolis, is thanks to the IT & ITES sectors. “The available talent and cosmopolitan culture of Bangalore are a big draw for corporates. Per capita income in the city is on the increase and the average Bangalorean has a higher purchasing power today,” says J C Sharma, MD, Sobha Developers.

Commercial: According to international property consultant DTZ, Bangalore, which is likely to figure in the top two cities globally in office space absorption this year, will witness an oversupply of 38%, where the supply is pegged at 18.3 million sq ft, while the absorption figures stand at 13.3 million sq ft.

Out of 12 million sq ft of fresh office supply expected in 2007, only 0.5 million sq ft is estimated to be contributed by CBD and Off CBD areas, as per DTZ data. “CBD rentals have been on the rise, between 11 -13 %. This is owing to the fact that the CBD is among the preferred locations in the city,” says Hugh Hamilton, Director, DTZ.

Despite Bangalore’s infrastructure concerns, 6.6 million sq ft of grade A office space was added to in the first half of 2007, as per a Cushman & Wakefield (C& W) report. The S.E quadrant of the Outer RingRoad (ORR), between Marathalli and Sarjapur witnessed an overall absorption of 1.1 million sq ft during the first half of the year. An estimated total supply of 2.1 million is expected in this region in 2007.

Residential: The city saw a 15-20% drop in primary sales across micro markets during the first six months of 2007, as per C& W data. This is attributed to high prices, steep home loan rates and the anticipation of a price correction amongst users. Further, there was no significant increase in prime residential prices during the first half.

“Bangalore has seen an increase in NRI-interest. This should herald an era of the steady growth in the coming months for Bangalore’s residential market,” says Balakrishna Hedge, President, Karnataka Ownership Apartments Promoters Association (KOAPA).

But the city is seeing an increase in villas and plotted development in the suburbs. To the North of the city Grade A projects offering villas are priced anywhere between Rs 1.2 crore on the lower end to over Rs 2.5 crore at the upper end. “In the South, Whitefield alone will see an oversupply situation in the coming months, with dose to 2 500 villas under development, ” said an industry analyst.

Retail: Bangalore is set to witness completion of 15 malls totaling between 5.5-7 million sq ft by end 2008, as per a Jones Lang LaSalle Meghraj estimate. This apart, the city’s landmark retail project, the UB City Mall located in the central business district (CBD) will add 120,000 sq ft to the city’s retail stock by the fourth quarter FY ‘07.

Average rental values in prime malls stood at Rs 150 per sq ft per month. “Rental values will continue to witness a northward trend owning to limited availability of professionally managed retails space,” Jones Lang LaSalle Meghraj local director (corporate solutions) Karun Varma said. Further, adding to the city’s magnetic appeal is the upcoming international airport at Devanahalli.

According to Anurag Mathur, deputy managing director, Cushman & Wakefield, “most of the land between Bangalore—Devanahalli Main Road (NH -7) upto the upcoming airport has been transacted almost 18-24 months ago by prominent developers and the remainder is what is currently being put out to sale.” While the asking rate for an acre on the Devanahalli main road (NH7) ranges between 2.5 crore to 7 crore (in rare cases), deals seem to be dosing within Rs 4 crore per acre, according to industry sources.

While few projects are being announced, the focus for now is on building land banks to be unlocked once the airport gets operational, according to real estate analysts. As per C& W data, the North Bangalore quadrant is to receive 900,000 sq ft of grade A office space stock in 2007. An additional 800,000 sq ft of commerdal stock is under development and the same is expected to be delivered by end 2007 or early 2008.

Source: The Economic Times

The blend of modern and traditional cultures, Pune was also a pensioner’s paradise for long. The city has expanded rapidly over the past few years and has become a preferred destination for several engineering, IT, BPO and software companies that have set up facilities there.

Driven by this positive growth in the local economy, real estate in Pune is booming. A large community of the middle and upper middle class is opting to buy stylish apartments in townships that have everything from swimming pools, gyms, squash courts to recreation centres. Some of the more sought-after addresses today are Hinjewadi, Kharadi or Hadapsar.

Seeing the potential of this manufacturing and growing IT hub of India, Bangalore-based Sobha Developers Limited (SDL), this week announced the launch of its first residential project Sobha Carnation in Pune. Apart from its prime location, it has picturesque hills in the background. The project site is located in fully-developed NIBM Khondwa area serviced by a 24 mX 18 m wide road.

The first phase of the project would be spread across 5.7 acres of land consisting of 116 luxurious three to four bedroom high-rise apartments and few duplex apartments and penthouses. A 17-acre, sprawling Sobha Carnation will have a range of world-class facilities translating into global living standards.

Located on the south-east, the project cost is estimated to be approximately Rs 120 crore and Sobha aims to complete this project by December 2009.

Speaking at the public launch later, Ravi Menon, vice chairman, Sobha group said, “Tier II cities offer tremendous potential for real state development. We aim to capitalise on this huge opportunity by offering the best of facilities to the consumers. Sobha Carnation is our effort to fulfill the aspirations of the people of Pune, known for its esteemed colleges, educational institutes and technological infrastructure”.

With prices starting at approximately Rs 3,500 per sq ft, the township is targeted at the upper-end consumer. “Being a virgin territory with a huge land base, Pune is the right choice for developers today.

Further, with a huge demand-supply gap in this city coupled with the fact that real estate rates in the city have not seen a downslide as is the case with the other cities, Pune continues to be an attractive option for developers and consumers alike,” says S Baaskaran, regional director, Sobha Developers.

Some of the project highlights are:

• A total area covering 17 acres with dedicated green cover.

• Development in phase I will be spread across 5.7 acres of land consisting of four penthouses with state-of-art architecture, 16 four-bedroom duplex houses, high-rise residential blocks with sprawling 64 three-bed room / 32 four-bed room apartments measuring from 2,220 sq ft to 3,935 sq ft.

• State-of-art clubhouse measuring 1,000 sq mt offering gymnasium with steam, sauna and Jacuzzi, Multipurpose party hall, Table Tennis room, Reading, card and carom room, Creche.

• Other amenities include swimming pool, amphitheatre, tennis court, children’s play area, jogging track and CCTV for security.

Source: The Financial Express

Paras Buildtech, a unit of Para Build-Call Pvt. Ltd. has won the “Best Project Commercial” for Paras Downtown Square at Zirakpur, Punjab. This honor was awarded at India Property Awards 2007 after carefully taking into consideration numerous other properties from some of India’s top builders by an eminent panel of judges.

Located at Zirakpur on the Y Fork of Delhi-Chandigarh-Shimla, 3,50,000 Sq. Ft. of high magnitude & quality Shopping extravaganza at Paras Downtown Square is the biggest mall of the region. It is a complete synchronization of design, luxury and quality.

Attached to the mall will be a well-designed Business Hotel catering to the new world business travelers. The region is buzzing with corporate activity and therefore the hotel has been designed keeping their convenience and exclusivity in mind.

Conceived as a world-class shopping mall Paras Downtown Square has majestic atrium with translucent ceiling, which will be the center point for shoppers giving a true international feel.

The mall boasts of many firsts in the region like- 4 Screen Multiplex by Adlabs, Anchor Store by Pantaloons and Hypermarket by Big Bazaar. Food Court & Children’s entertainment center, spread over an area of more than 23,000 Sq. Ft makes Down Town Square an unrivalled leisure destination.

Elated on receiving the award, Mr. Rajinder Takhar, COO said, “Paras Buildtech – a unit of Para Build-Call Pvt. Ltd. is the name that is associated with quality and reliability and this award is a testimony of our work and dedicated team who has worked heard to create landmark projects like Paras Downtown Square.”

“This mall will house well known brands in Fashion, Lifestyle, F& B and Entertainment, hence providing a world-class platform to all the retailers. Also, due to the sheer design of having a hotel along side the mall will provide it the status of a ‘Regional Mall’. Downtown Square will target clients from Delhi, Himachal Pradesh, Haryana, Punjab and Chandigarh”, he added.

Equipped with intelligent Air conditioning system, high-speed escalators & elevators, ample parking in two level basements, Downtown Square benchmarks luxury and exclusivity.

Designed with a thrust on aesthetics & functionality, Paras Downtown Square “The Mall That Has It All”.

Paras Buildtech – a unit of Para Build-Call Pvt. Ltd.“Quality is an obsession with all of us. What binds us together is the sheer Commitment to hard work.”

Paras Buildtech is a progressive, future-focused, real estate company that is at the cutting edge of its industry. Its high levels of integrity and dedication have made the company one of the most respected real estate developers in a short span of time.

It has an enviable reputation in conceiving and executing large sophisticated real estate projects in both commercial and corporate segments, bringing together the unmatched experience & expertise of India’s most reputed business conglomerates.

From concept to completion, Paras Buildtech is into prime real estate development and property management, coordinating a full spectrum of services including site acquisition, design and development, construction, marketing and sales. Paras Buildtech, today, is the name that is associated with quality and reliability and deals in retail, real estate commercial and residential projects.

Source: businesswireindia

US-based Bear Growth Capital (one of the largest global investment banks, securities trading and brokerage firms in the world) plans to invest around $150-200 million (Rs 600-800 crore) to pick a 8-10% stake in Gurgaon-based real estate company Vatika Group (one of the leading groups in real estate, hospitality, Resorts, Farmlands and Luxurious Commercial complexes such as First India Place vatika triangle & Vatika world).

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

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

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

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

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

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

Courtesy: Indiarealestateblog

It’s a known fact that India Real Estate sector is booming and it has provided innumerable opportunities for investment throughout the country. All throughout the country, whether it is the metropolitans or the two or three tier cities are exploding with commercial high rises, residential townships, industrial parks and shopping malls. It is estimated that Indian real estate is presently growing at 30 % per annum and the property industry boasts of a wide range of products that includes property prices which would suit even the people of the low-income group.

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

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

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

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

  The term “Real estate” refers to immovable property or real property such as a building or land. Commonly said real estate is the legal term provided to the immovable property. With the development of the real estate and the emergence of the private or public sector in the real estate, it has become a major area of business.

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

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

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

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

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Real estate services firm Cushman & Wakefield has partnered with MIPIM Asia to bring out the 2007 Asia Pacific Investment Report. According to the report, India’s hospitality sector is expected to emerge as a key area for investors over the next few years, due to a demand-supply imbalance and a lack of quality infrastructure.

Covering Australia, China, Hong Kong, Indonesia, Japan, Malaysia, the Philippines, Singapore, South Korea, Taiwan, Thailand and Vietnam, the report provides a broad overview of the key factors, risk assessment, regulatory changes, economic prospects, return expectations and market trends that play a major part in property investment decision-making.

The report says that the Australian office, industrial and retail markets are all expected to perform strongly over the next 12 months. Overseas property investors in China will start looking at a broader range of product types and investment scenarios and a much wider range of geographical locations.

Other highlights of the report: a re­surgent Japanese economy and strong demand from investment funds, particularly foreign funds, is driving commercial land prices upwards there is a new sense of optimism in Singapore brought on by an improving economy, emerging high-impact tourism and iconic real estate projects.

Courtesy: The Hindu Business Line