Oberoi Constructions has hired investment banking major Morgan Stanley to value the company. The real estate developer plans to issue fresh shares under the IPO, however, the exact dilution of the stake is not known. The company plans to use the IPO proceeds for land acquisition and fund upcoming projects including the Oberoi Garden City and four and five-star hotels across the country.

“We have executed many major projects in Mumbai and have a good land parcel in the heart of the city. We will not go for pre-IPO placement of shares,'’ said Vikki Oberoi, managing director of Oberoi Constructions.

The company has a land bank of 130 acres mainly in the western suburbs of Mumbai. It has eight residential, commercial and retail projects under construction with a development potential of 21 million sq ft, he said.

On volatility in the stock market and hammering of realty stocks, Oberoi said, “Stock markets will distinguish between the performers and non-performers. We are confident of a good issue,'’ he said.

The company is building Oberoi Garden City, an 80 acre composite realty project including office complexes, malls, schools and residential townships with expected revenues of Rs 8,000 crore (Rs 80 billion).

The company has plans to build such projects in all the major cities including Chennai, Bangalore and Hyderabad among others.

These projects will be spread over 80-100 acres. Based on land prices in different cities, these projects have a land acquisition cost of Rs 400 crore (Rs 4 billion) to Rs 500 crore (Rs 5 billion) and a construction cost of nearly Rs 2,000 crore (Rs 20 billion).

“We are expecting revenues of Rs 4,000 crore from these projects in three years,'’ said Oberoi. The company has also placed a Rs 2,000 crore order with construction major L& T for executing its realty projects.

Oberoi has tied up with Westin Hotels and Resorts of global hospitality major Starwood Hotels for its five-star hotel at Oberoi Commerz in Mumbai.

The company has acquired land for four more hotels in Mumbai and Pune. It is also scouting for properties wherever the company is building Garden City projects. The company will have five hotels, in the four-star and five-star categories, in the next five years, he said.

“Our first hotel will open by 2009 beginning. We have plans to open one hotel every year for the next five years. Starwood will be a preferred partner for our hospitality venture,'’ Oberoi said.

Apart from the IPO proceeds, the company is planning to use internal accruals for the development of upcoming properties. Oberoi also added, “the company would also go for infrastructure projects if they contain real estate element”.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

ICICI Home Finance expects Kolkata to contribute in a big way to the residential financing market in the next 3 years.

“Although the residential financing market space in India is about Rs 1 lakh crore and the market in Kolkata is around Rs 2,000 crore, it is expected to grow at a much faster rate compared to the other metros in the next 2-3 years,” said Sunil Rohokale, the managing director and CEO of ICICI Home Finance.

Saturation in other markets will give a boost to the market in Kolkata. Mumbai leads the residential financing market with a share of 10 per cent, followed by Delhi and Bangalore with 9 and 7 per cent respectively.

“Slowly, but steadily, the other markets are getting saturated and the Kolkata market, being relatively cheaper, provides a better alternative,” he added.

Rohokale also attributed Kolkata’s rise to the state government’s proactive role in promoting lower and middle income segments, where affordable housing is possible.

“The West Bengal government is looking for inclusive growth and by providing incentives, by encouraging public private partnerships not only in the higher-end segment like commercial buildings but also in the middle and lower segments as well, which consist of mostly small housing projects,” he said while talking to Business Standard on the sidelines of an interactive session at Credai Bengal Real Estate Conclave.

It would be in the affordable housing segment, where most of the private investment is going to come, feels Rohokale.

In the last two years, the real estate market attracted an investment of around $7 billion, including $3 billion from equity. Of this, the share of Kolkata was around 3.5 per cent, amounting to $150 million.

“There is a huge demand in Kolkata for affordable housing flats, which range between Rs 15 lakh and Rs 25 lakh, but the developers are most active in the premium-range flats between Rs 25 lakh and Rs 50 lakh. Hence with the state government providing incentives, affordable housing space looks most attractive in Kolkata,” Rohokale added.

Source: http://www.business-standard.com

According to a report by propertyvertical.com, retail growth will not only push demand for commercial property but will drive demand in the residential segment as well. The report, commenting on the causal relationship between growth in the commercial segment and the demand for housing, asserts that rapid commercial development in Delhi and the NCR has led to a spill over of housing growth from Noida to Greater Noida. Gurgaon to Meerut, Bhiwadi and Ghaziabad to Manesar.

The report goes on to state that the next best bet for investors in the NCR is Manesar. Emerging as one of the biggest industrial hubs around NCR, Manesar has become an attractive investment destination. In fact, it is likely to be one of the biggest growth centres in the NCR. The report further states that it has all the ingredients of being the next commercial hub, after Gurgaon, with better infrastructural facilities and tax incentives. It is also likely to emerge as one of India’s major outsourcing hubs, with corporate entities like Honda, Baxter, Suzuki, Stanley, Mitsubishi, Nippon, Toyota and Maruti Udyog setting up shop here. Naturally, such massive corporate and industrial activities not only triggered the need for office space, but have also created a huge demand for residential properties from people who are employed here, and also from those likely to be inducted by emerging corporate sectors.

Ghaziabad, too, has received a major boost due to the Commonwealth Games 2010. There are major hotels with international standards under construction as also huge commercial malls, with some having hotels on top floors. These will be operational in areas like Indirapuram, Vaishali, Kaushabhi and Vasundhra.

The Metros is another development here and has certainly resulted in the appreciation of land prices along the route. According to the report, in the last nine months, residential property prices in Indirapuram have gone up from an average of Rs.1600 per sq.ft. to over Rs. 3200 per sq.ft. This clearly depicts Ghaziabad’s increasing popularity, which will certainly give boost to the commercial segment once residential properties are developed and inhabited.

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

OFFICE STAKES IN BIG METROS

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

There is increasing interest in investing in land rather than constructed properties. This trend has merit, since land value appreciates while the value of a construction depreciates. In other words, buying land in a growth sector always makes sense. However, one should approach such land purchase with due caution and prior research.

Investment horizon

Purchasing land as an investment usually pays off only as a long-term venture, with a minimum holding period of between 5-10 years.

Safe purchase parameters

In general terms, it is definitely not safe to buy land without thoroughly acquainting oneself with the local market, and the legislative dynamics of that area.

Buying land situated near a housing scheme calls for extreme caution, since one may inherit the covenants and restrictions applicable to the housing scheme.

Ø          While buying a plot as an investment, one should ensure reason able proximity to key roads and access to water and electricity.

Ø          One should also acquaint oneself with the development plan for the chosen area – this can be established from the local administrative body.

Ø          One should be very clear about what taxes one will incur and whether the plot has a permit for raising residential/commercial structures. Raising large structures is not an option on agricultural plots, which are cheaper and have a lower tax burden. If the plot is the agricultural kind, one should establish whether its status can be converted for construction purposes later on, or not.

Ø          Before purchasing land, one need to investigate possible multiple ownership issue and zoning restrictions such as CRZ, NDZ etc.

Return on investment

The value of a plot of land in any particular location depends on what the government will permit to be done there, and on the success dynamics of the society in which the land is situated.

You cannot add to the value of land as you can to a structure - value derives from the dynamic community that makes the land desirable. Therefore, a plot's value will appreciate if there are developments in the vicinity to make this happen. Sometimes, investors purchase land based on anticipated value – something like a mall, multiplex or office block is scheduled to come up nearby If the anticipated development fails to materialise, or if the location does not receive water or electricity supply, the plot will fail to appreciate.

Land will also fail to appreciate if it is in danger of being taken over by the government for its own purposes.

No matter how good a plot looks, or how reasonable the price, one must check everything. The price may be low because certain legal sanctions or complications incurred during a previous ownership have rendered it a non-selling proposition.

Other factors to investigate.

Ø          Availability of ground water

Ø          Soundness of electrical supply in the area

Ø          In case of residential land – avail ability of schools, colleges, medical facilities, domestic markets, public transport, etc.

Ø          In case of commercial land – avail ability of retail outlets, post offices/couriers, telephone connectivity, other reputable commercial establishments in the vicinity.

Ø          Availability or non-availability of the above will substantially influence the property's overall appreciation potential. Investment in commercial or residential land in an established growth sector with all of the above factors in place definitely makes a lot of sense.

Where are the best land deals today?

The most sought-after land for sale in India is in the metros. However, due to the extreme supply crunch, the rates are invariably completely out of reach for any but corporate or institutional investors. As a rule, the only ‘good deals' in central Mumbai, Bangalore, Delhi and Kolkata comprise of purchasing available plots at exorbitant prices and then cashing in on their immense appreciation potential.

For smaller investors, buying a plot in an upcoming suburb or a potential-rich Tier II or Tier III town is a far more feasible option – especially in context with larger plots, which are out of question in metros.

    Courtesy: HT, 12^th Nov. 2007

With regards,

John, http://www.zameen-zaidad.com                   

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

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

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

With regards,

John, http://www.zameen-zaidad.com

“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

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

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

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

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

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 & Childre