Rahul Verma

NCR-based leading developer Gulshan Homz has launched its much awaited premium residential project christened ‘Gulshan IKEBANA’, located at sector-143, Noida Expressway.

Spread over an area of approx. 12.5 acres, the project will consist of G+19 towers, offering 3BHK luxury apartments in 1340, 1495, 1695 and 1995 sq ft sizes, priced at Rs 4150 per sq ft, plus additional charges. A total of 1500 residential apartments are expected to be made in phases.

The company plans to invest Rs 900 crore into the project that would be arranged from internal accruals and public investments into the project. It will take four year to complete construction. Total 300 units are already sold in the project pre-launch.

IKEBANA, located on Noida Expressway at a feasible distance from DND flyover and FNG, boasts of state-of-the-art amenities from indoor & outdoor games, kids lounge, guest+ lounge, party hall, swimming pool, intercom connectivity, club-lounge, landscaped gardens, 3-tier security, 100 per cent power backup, etc.

Speaking about the project, Gulshan Nagpal, MD, Gulshan Homz shared, “IKEBANA, meaning beautiful arrangement of flowers, has everything that a normal person with a taste of good-living need today. True to its name, it is surrounded by beautiful green surrounding and artistically done-up landscapes. Timely delivery, quality and class are the USP of the project.”

Deepak Kapoor, director, Gulshan Homz said, “Passion for excellence has gone into the planning and designing of IKEBANA. With exclusivity and location, it would be appreciated by all buyers. Our motto is Length, Breadth, Height and Passion, we will deliver the project on these parameters.”

The company, Gulshan Homz, known for developing luxurious residential projects like the recent project Homes 121 and Vivante located in Noida, has been recently appreciated as ‘Emerging Developer of the Year- Residential’ by Realty Plus.

Source : http://www.realtyplusmag.com/rpnewsletter/fullstory.asp?news_id=20288&cat_id=1

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Godrej Properties, the realty arm of Godrej Group, plans to continue its focus on residential space, a top company official said.

“Though there is negative sentiment among buyers at present, the demand for houses will continue to grow, which is a huge opportunity for developers like us. We will continue to remain very much focused on the residential space,” Godrej Properties (GPL) managing director and chief executive Pirojsha Godrej said.

Of the 10 deals that the company signed last fiscal, only one was in the commercial space, at Bandra Kurla Complex.

“Going forward, the entirety of our business will be focused on residential space,” he said, adding, “It is not that we feel the commercial space will not do well, but given our current portfolio, we think we have a significant exposure to this segment.”

“Financing for residential projects is much easier than commercial projects. In residential, construction can be financed by customer advances. That is the key for scaling growth,” said Godrej.

GPL plans to launch 15 projects this fiscal, he said, adding that these will primarily be residential projects.

Source : http://www.realtyplusmag.com/rpnewsletter/fullstory.asp?news_id=20290&cat_id=1

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Real estate-focused private equity (PE) fund ASK Property Investment Advisors — part of the diversified financial services firm, ASK Group — is charting its first exit since it started deploying money in 2010, reports Mint.

The fund will get returns of about 2.5 times on the Rs 50 crore it invested in a residential development project in Noida by ATS Infrastructure Ltd, group chief executive Sunil Rohokale said. ASK Property made the investment in 2010.

“We have made seven investments in residential projects from our first fund, and we expect IRRs (internal rate of returns) of 30 per cent from them,” said Rohokale.

The 14.5-acre Noida project, comprising 12 towers, will be completed in a few months. ASK will probably exit the project a few months before schedule, helped by the strong sales for it, Rohokale said.

While exits in office projects are usually in the form of buy-backs by developers or sales to third-party investors or buyers, exits in residential projects self-liquidate as sales happen.

ASK Property, which invested in the ATS project from its Rs 326 crore first fund, ASK Real Estate Special Opportunities Portfolio-1, is raising a second domestic fund of about Rs 1,000 crore. It has so far raised Rs 850 crore for it.

Rohokale said the remaining process will be completed once the Securities and Exchange Board of India finalizes the regulations for alternative investment funds.

ASK has invested close to Rs 600 crore from its first and second funds, including the three investments it made in Mumbai and Pune this year. Shortly, it will also begin raising its first offshore fund of $250-300 million, which it recently registered in Singapore.

As a fund, ASK Property invests in residential projects and is particular about the price band in which the apartments are sold. In Mumbai, it typically invests in projects priced at Rs 8,000-12,000 a sq ft. In Pune, Delhi-National Capital Region and Bangalore it invests in projects priced at Rs 4,000-6,000 a sq ft, the report added.

Source : http://www.realtyplusmag.com/rpnewsletter/fullstory.asp?news_id=20291&cat_id=1

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French Hotel Company Accor on Monday launched its first Pullman hotel in India.

Xavier Louyot, vice-president, global marketing, Pullman, said that in addition to the Gurgaon hotel, the company will be launching three more hotels under the Pullman brand and these are in various stages of construction.

A Pullman hotel is slated to come up near the Delhi International airport besides one each at Lavasa and Gandhinagar. “With increasing opportunities for holidays, leisure and business, India is becoming one of the leading venues for MICE (meetings, incentives and conferences) in the region,” he said.

Source : http://www.realtyplusmag.com/rpnewsletter/fullstory.asp?news_id=20296&cat_id=1

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Unlike some other real estate companies, Earth Infrastructure supports the government’s move to bring in a real estate regulator which it claims would immensely benefit consumers by bringing transparency in property transactions. Vikas Gupta (JMD), Earth Infra, articulated the company’s stance on this and many other pertinent issues confronting the real estate sector, in a free-wheeling tete-a-tete with Vishnu Rageev R of Realty Plus. Excerpts…

Vishnu Rajeev R: Could you take us briefly through the company’s journey since its inception? What, according to you, have been the company’s notable achievements during this period? How much has the company grown in terms of the developed area, and sales turnover?

Vikas Gupta: In the year 2010, Earth Infrastructure started off its journey with its flagship project christened Earth Towne, a mass housing project. In this short span, the company has managed to construct about 6,000 flats for medium income bracket people across 19 acres land in Greater Noida. Here, the land was acquired by Greater Noida Development Authority. The company began operations with this mega project valued at Rs 75 crore which spread its popularity pan-India. One of the notable achievements is that the company has sold more than 70 per cent of inventory within 100 days of the launch of the project. Even industry experts touted it as a mega success in real estate sector in the recent times. The major reason for the success was because of our marketing strategy. The project was marketed not only in Delhi-NCR but also in tier I and tier II cities pan-India. Encouraged by the success of this project, the company launched its first commercial project Earth Sapphire Court in Greater Noida and then another mega housing project with the name of Earth Copia in Gurgaon in the year 2011. Within the first 18 months since its inception, the company is presently developing over seven million sq ft of residential and commercial real estate.

VRR: What are the current initiatives and immediate plans of Earth Infra across residential real estate segment? Share details of your existing projects with pricing, features and other specifications.

VG: The company, which is strictly following the concept of developing green sustainable buildings has launched LEED certified green projects alone. The company is planning to launch a residential project in Noida and another residential project in Gurgaon in the next 3-4 months. Presently, we have two important projects which are under development — Earth Towne and Earth Copia — located in Greater Noida and Gurgaon, respectively.

Located at Plot No. 4, Sector 1, Greater Noida, our first project Earth Towne has been completely sold out and has about 1,800 investors in it. This LEED certified green project offers 1, 2, 3 and 4 BHK apartments. It features a wide spread area of 19 acres lush green landscapes, water bodies and beautiful boulevards, dry balcony, 70 per cent wide open green area, etc. The project will have amenities like gymnasium, club house, swimming pool, gazebo, paver block roads, tennis court, barbeque, caring zone with nursing homes and the like. It is priced at `2,650 per sq ft.

Earth Copia is a residential project located at Dwarka Expressway at Sector 112, Gurgaon. The project offers 2, 3 and 4 BHK apartments. Each apartment boasts of adequate living space for the whole family as well as a corner for an individual pursuit. It is a prestigious residential project in Delhi’s neighbourhood with 70 per cent greenery to maintain harmony with nature. It is equipped with all modern life facilities like 100 per cent power backup with latest security features and also includes ultra modern club and a world-class gymnasium. It is priced at Rs 4,000 per sq ft.

VRR: What would be the quantum of investment for your upcoming projects? How do you intend to raise the money for expansion? Do you plan to come up with an IPO in the near-to-medium run?

VG: We have big expansion plans in the pipeline. We are planning to invest more than Rs 750 crore in next six months for our expansion and constructions across existing sites. We are planning to raise the required money from internal accruals and advance from our investors and prospective buyers. We are also approaching domestic financial institutions for raising fund through loans.

You can expect an IPO from Earth Infrastructure in the year 2014 depending upon the share market climate.

VRR: Who are the key persons driving the group?

VG: Avdhesh Goel is an avid learner. He has worked tirelessly to put Earth Infrastructure Ltd on the map of Indian realty sector, turning opportunities into successes. His outlook has helped him in shouldering many additional responsibilities alongside his professional calling. He has brought radical changes in business strategies, professionalised the entire group and has redefined the internal system. Instrumental in acquiring many proprieties in the NCR, he has also been involved in partnership with prestigious and leading infrastructure companies.

Atul Gupta is a symbol of drive and performance. An expert in numerous management methods, he influences the internal and external dynamics of the organisation, synergising them with success. Principled, yet open to fresh thought and ideas, he has always used emerging practices and business models for rapid growth. He is also the founder of Uttkarsh, an NGO that works for the aged and the special- abled.

Rajnish Mittal an expert in impression management, has worked wonders for the company’s public image. His pioneering strides towards relationship endeavours, such as corporate assets and legitimising long term competitive advantages, have helped in getting the company maximal social recognition.

Myself, has been entrusted with fulfilling the expectations of the customers as well as manage to build a unique corporate identity for the organisation. I have also made various contributions to many American and European counterparts. As an entrepreneur and planner, I have tried to create multiple choices for the customers in the realty sector and institutional segment.

VRR: Any plans to foray into other areas of real estate developments like commercial, retail, hospitality and the like?

VG: We are already developing commercial and retail real estate projects. The company is all set to launch five-star hotels in Neemrana in Rajasthan and Manesar in Haryana.

VRR: How conducive is the current market for value/affordable homes in Delhi-NCR region? Have you ventured into the segment?

VG: We have a project in Noida Extension which is in the affordable housing segment. There is huge scope for such projects in the whole Delhi-NCR but developers alone cannot take the entire initiative. The government should come forward to sell the land to developers at cheaper rates to allow them to come up with such projects to cater the need of masses.

VRR: How do you visualise your company vis-a-vis your competitors? What are your core strengths in real estate business?

VG: Our company believes in innovation and follows the philosophy of “Innovation Beyond Imagination” while planning our projects to cater to the needs and demands of our clients. We are into green buildings which itself give us an extra edge over our competitors. We will keep these two aspects on priority while planning and executing our projects as we believe in delivering the best to our investors. We believe in high-end client servicing and being into green housing, we offer them a caring and eco-friendly environment to live in.

VRR: As Noida stalemate continues, what is your assessment of the current real estate scenario in Delhi-NCR? How do you expect this market to behave in the next one year?

VG: The issue of Noida and Noida extension has almost been resolved due to the active intervention of Greater Noida Industrial Development Authority. They have settled the cases of 60-70 per cent farmers. And we hope for a positive judgement from the honourable High Court.

The real estate market in Delhi-NCR is going to witness moderate to high growth in this coming years.

VRR: Are you in favour of a real estate regulator? What are the prospects and challenges before Indian realty sector?

VG: Yes, we strongly feel that there should be a regulatory body for the real estate industry. This would make the sector more organised and prompt in its dealings with all the associated parties. The Noida Extension issue also highlights the need for the regulatory body for real estate industry. This would also benefit investors and other parties involved.

Although there are many challenges, Indian real estate sector will only prosper in the coming years.

VRR: What are your major promotional drives? Which media vehicle or promotion mode do you consider most suitable for crating brand awareness?

VG: I feel that print and electronic media are the suitable mediums for the brand awareness as they reach the masses. Besides, the editorials and press releases play an important role in positioning the brand as they come from an authenticated and responsible source of the society.

VRR: Anything else you would like to share with our readers?

VG: I want to highlight the importance and requirement of Green Buildings here. Today global warming is a matter of grave concern and I would like to say to your readers that they should go for the green building projects as it would give them a healthy and eco-friendly environment and would decrease the CO2 levels, apart from providing them savings on electricity and water consumption.

Source :http://www.realtyplusmag.com/rpnewsletter/fullstory.asp?news_id=18768&cat_id=25

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a Realty Plus: What was your inspiration behind taking a path less travelled by venturing out into professional property brokerage business? What was your initial capital outlay? How has been your business journey so far with notable achievements during this period?

Samarjit Singh: It all happened a couple of years ago when myself, my friends Pranav Ansal and Rishi Khosla were discussing on the lines of launching something unique. We found that real estate was not professionalised in the country in the way it is evolving today. Our concept was first-of-its-kind in India because our thought was to set up a property advisory company or transactions services business that is clearly based on representing/protecting customers’ interests in property transactions. That concept didn’t exist in India, that’s how Agni Property was born. As far as investments are concerned, initially we had 3-4 investors – primarily myself, Pranav Ansal and Rishi Khosla — who all jointly put in about $5 million to set up this company. Presently, we have more investors, foreign partners who later joined to be a part of Agni’s growth story. Now, we continue to expand/grow with their support.

We started off business in the secondary market but later we realised that the primary market is much bigger, so about two years ago we transferred our business from the secondary to primary market alone. Since then, our business has grown exponentially. In fact, revenues have grown about six times in the last one year alone.

a RP: How do you visualise your company vis-a-vis your competitors? What are your core strengths in real estate business? How do you tackle challenges arising from regional market players? Which Indian region/zone is the most challenging and why?

SS: Our assessment is that although the market is cluttered, there is no tough competition because of the huge market size. Organised players don’t have even 1 per cent pie here. So, when the market is fragmented, there is an opportunity to access 99 per cent of it. We are the only property house which has presence in four zones — New Delhi, Kolkata, Bengaluru and Mumbai. So nationally, we don’t have any competitors. Regionally, yes, we have lots of players but they still represent a region with very less developers. If you look at our company, we have worked with 500 odd developers pan-India. We have tie-ups with players across the country, I don’t think anyone else has this scale which we have.

RP: Could you name the different verticals wherein you offer comprehensive property solutions?

SS: We are offering home buying solutions; commercial business is not so large. We are offering affordable housing options to middle -class and luxury to PCG (Premium Customer Group). PCG customers are HNIs who are looking for buying lifestyle or “trophy” property. We are focusing on PCG vertical, middle and low via retail vertical.

RP: At present, which all are the cities that you have presence in? Any plans to enter new verticals?

SS: Currently, we have presence in Gurgaon, Delhi, Noida, Mumbai, Bengaluru and Kolkata. We are soon opening offices in Ahmedabad, Pune, Hyderabad and Chennai. Generally, people think that primary market business is the only area where Agni is really focusing on. But it’s just the first leg of our overall plan. The primary market is fully deployed and you can see footprints across the country. Our next part is going to be secondary market where we will have the secondary product and secondary division that will deal in sale, resale and leasing of property. Plans are afoot to soon launch a home finance arm wherein our customers will get housing loans. Besides, we will have the consulting business which will help developers know better about IT and technology services. It will help them to enhance price realisation, yield management, inventory management, etc.

RP: By when can we expect a housing loan arm of Agni Property? How much money are you going to invest in the home loan business?

SS: Housing loan business is presently under what we called “beta testing”, which means we have already started up the project but we have not publicly launched it. The reason for which is that, we are making it sure that the service gets appreciated at its launch itself. So, it will take another four to six months for the actual brand getting launched officially.

a An investment of $20 million has been earmarked for expansion of our new verticals. Big investments will happen as we expand our businesses rapidly – maybe by 2012-13.

RP: Could you explain Agni Property’s business model? What is your brand identity and positioning in today’s real estate market?

SS: As I said, presently we are in the primary business segment, which means we have tie-up with developers and represent them to provide home buyers with lots of choices. We have our well-crafted internet strategy and make sure that 90-95 per cent of our customers are brought in through online/internet. We are one of the few national companies that has a transaction model, which means we earn not only the revenue from ad fees but also from actual transactions.

We believe in COCO (Company Owned and Company Operated) modeled business. Soon we will have 400-own employees. In this business model, staffs can be motivated, accountable and controllable. Most importantly, we can decrease the risk of misbehaviour of our staff with customers.

RP: Are you also looking to have any understanding/tie up with local brokers? What are the criteria for selecting small brokers?

SS: This is through our business associate (BA) model. A property broker can have a tie up with Agni and we will provide him training and knowledge, thus helping him in growing his business. He can continue with his own brokerage business, but just needs to partner with Agni — under his firm’s logo will be written ‘Powered by Agni.’

The most important criterion for becoming an Agni associate involves matching the value system of our company — transparency, integrity, interest and excellence. Our associates should display positive mindset and approach, while educational qualifications are not a must.

a RP: What precisely is your customer profile? What makes a customer come to you when there are other thousand channels like yours?

SS: Our customers come from the ‘emerging middle class’. Notably, the ownership age has gone down drastically. While earlier people used to buy homes at the age of 40-45 years, these days this age is usually 30-35 years. Our whole approach is customer-driven, so unlike other local brokers, if a project is not beneficial for customers, we will not recommend them to buy it.

RP: In future, do you have plans to get into real estate development?

SS: We are a professional property consultancy company. We will never get into real estate development because it would be a conflict of interests if on one end we are advising property buyers and on the other end, we have our own projects to market. Customers will never trust us because they will say that we are trying to sell our projects rather than properly advising them. So, as impartial advisors, we don’t want to get into real estate development.

RP: On an average, how many successful property deals do you strike in a month?

SS: It is a confidential information, which I cannot divulge. However, on an average 60-70 thousand customers take advice from us. Our advices are free to all customers.

RP: Do you favour a real estate regulator to monitor brokerage business too?

SS: We believe there is a need for regulator in real estate development. When there is a regulator for the sector, the brokerage industry will also get regulated automatically. We have no problem coming under the ambit of a regulator but first an industry status is a must for real estate sector sector.

RP: What are the prospects and challenges before Indian real estate?

SS: See, we have to realise that there is a need for transformation in real estate sector. People keep using the word “professionalisation”. My view is that “professionalisation is a journey and not a destination”. We have to be continually improving and transforming. The whole real estate sector needs to ‘transform’ itself like automobile sector has changed in last few years.

RP: What marketing strategies do you follow with home/property buyers? What is your opinion about SMS marketing? What are the most effective marketing tools to reach customers?

SS: Our company has always been pioneers in introducing new marketing strategies. We are the first company to start a toll free number for customers across India. We are probably the first in the world to have launched recommendations for which we alone are accountable. We launched the capital guarantee wherein we recommend a particular property and guarantee the customers that they will never lose money on the value of that property. Profit would be theirs, but for any loss we will compensate. Third, we do the whole due diligence part with every project, involving all paper work. Fourth, we have fragmented the sales process into separate departments for sales, marketing and collection.

Actually, SMS used to be a good marketing tool but after TRAI regulation SMSs are passe. SMS can be used by the proper companies who have got technology. Our belief is that most of the people, before purchasing a property, do their independent research and the best way is internet where you can study every project. Our view is that ‘innovative marketing strategies’ are largely going to be in online/internet format, so we have a separate technology team, we are doing various campaigns on Google, working with Facebook, Linkedin and using social marketing techniques to bring customers into our network.

RP: What is the kind of understanding do you have with developers?

SS: I think we are the only company to have documented agreements (MOUs) with developers before we start work. We will never work with any developer without documented memorandum which is signed by developers and various departments. Before selling the property of a developer, our various departments assess whether the developer measures up to our yardsticks. We believe in Credibility, Saleability and Collectibility. If the project is saleable, the developer is credible and so our fee is collectable. Saleability is judged from the price and location viewpoint.

RP: What commission does Agni charge per deal?

SS: We charge fees from developers, property buyers don’t need to pay us anything. The charges vary from developer to developer, project to project and region to region. Like Mumbai, West Zones percentage is lower as it doesn’t offer much discount, so the margin is low. While in North Zone like Noida, Gurgaon, it is little higher.

RP: Who are the stakeholders of Agni Property?

SS: Stakeholders of Agni Property are basically the promoters of the Agni followed by private equity funds – US-based Foundation Capital and an India-based fund called Helion Ventures Capital. The promoters also have such high quality institutions backing them that it helps us have credibility in real estate sector.

RP: There was a common perception in the market that Agni was sold off earlier? Can you explain what exactly is going on?

SS: I am the principal promoter and majority shareholder of the company. I have the management control and run the company. As we are geographically expanding, we will be adding more verticals. For our business to become successful, we need senior professionals, so we did appoint the best COO to professionally manage the company, I was involved in the process. There is no confusion in saying that while our CEO, Bhaskar Bagchi continues to run operations, I am are very much in the hot seat and will continue to be so.

a RP: How do you expect real estate market to behave in coming years?

SS: There is nothing wrong in real estate market. Currently, sentiments are negative because of high interest rates. The moment sentiments get corrected and interest rates come down, new launches will happen and developers will again be active and the demand will rise. The real reason behind rising interest rate is that the government/people have confidence in the resilience of Indian economy. Property will continue to be bought as our economy has strong foundations. As Warren Buffet said, ‘be greedy when others are fearful and be fearful when others are greedy’.

RP: What is your view on the government agreeing to 51 per cent FDI in multi-brand retail? Do you think it will lead to more action in commercial real estate?

SS: There will be lot of activity in the whole real estate supply chain. It will provide lot of employment opportunities across sectors and will make homes affordable to more people. When large stores like Wal-Mart open up in a suburban satellite town, the area will also see development and real estate prices will rise exponentially.

RP: What was your ad spend last fiscal and what would be its quantum this fiscal (2011-12)?

SS: Last year we spent close to about Rs 5 crore on our promotional activities. This year we are planning to spend about Rs 12 crore on advertisement and marketing. RP: What is your company’s expected turnover this fiscal? Any plan for IPO?

SS: This year we are going to do GTV (Gross Transaction Value) of anywhere between $600 million to 1 billion in terms of the values of the homes sold; this would be varying from region to region.

At present, our goal is to build up the whole network and take the business to the next level. IPO is needed only when we require capital for further growth. Right now, we are not thinking to hit the share market, we may consider it in another 2-3 years, if we require more funding to expand, to launch new business verticals and add new offices.
Source : http://www.realtyplusmag.com/rpnewsletter/fullstory.asp?news_id=18766&cat_id=25

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Q: What actually went wrong with the Noida Extension where real estate projects continue to be stalled with no immediate solution in sight?

Ans: To my mind, developers, by and large, did not have qualified township planners in their team who could have even read or understood the NCR development plan fully. They should have also gone through various facets of the direct or indirect effect over a large number of people including the land owners, investors as well as the end-users, who were actually going to settle down there.

Had the developers taken the services of qualified planners, the controversy at Noida Extension could have been averted up to a larger extent as the planners would have made them aware of various aspects of the new township creation as per the NCR planning board, and helped them plug the loopholes.

Q. Should developers take the help of reputed international planners in order to make plans for township foolproof?

Ans: No, developers should hire Indian planners for this purpose, who would be more efficient and well aware of the ground reality in Indian situations.

Q: What, according to you, are the important steps to be followed before a township is planned?

Ans: The most important part of the township planning involves an effective policy which should be of world class level. The policy will include land policy, re-development, re-planning, and TDR Ttransfer of Development Rights), among many steps.

The initiative to plan the township should come from the government but not a motley group of developers who, after congregating at one place, start promoting that region as a township, and in due course the end-users find themselves taken for a ride if the said township meets with a sad fate.

Q: What else would you suggest to rule out a Noida Extension like situation?

Ans: Transparency in the policies is of utmost importance. Ideally, before a township is created, everything is planned in advance, like the roads, parks, schools, hospitals and recreational areas. It is also advisable to create a website updated with every details about the planned township.

There should be an option at that website to invite comments and suggestions from the people, as the feedback from the people can always help the planning process improve in many aspects, as no plan is a perfect plan.

Source :http://www.realtyplusmag.com/rpnewsletter/fullstory.asp?news_id=18765&cat_id=25

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Mumbai’s residential prices have fallen 9.1 per cent between March 2011 and March 2012, which was one of the highest decline among world’s top cities, according to a new study by global property consultancy Knight Frank.

Sydney, which saw a fall of 9 per cent, and Kuala Lumpur, where prices fell 8.8 per cent, are the other cities which have seen similar fall in property prices, says the Knight Frank Prime Global Cities Index.

Overall, the index rose 1.4 per cent in the 12 months period to March 2012, a statement from Knight Frank said.

Nairobi, Jakarta and Miami are the cities which saw an increase of 24.2 per cent, 14.3 per cent and 13.9 per cent in home prices respectively.

Source :http://www.realtyplusmag.com/rpnewsletter/fullstory.asp?news_id=20305&cat_id=3

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The rental values of both residential and commercial properties in Hyderabad have gone up by 10 to 20 per cent in the last quarter, reports Business Line.

This varies depending upon the location. In some areas, the hike is steeper going up by about 20 per cent and in others it is about 10 per cent, according to D Sreedhar Reddy, President of National Association of Realtors India.

Interaction with a cross section of real estate players and recent reports of consultancy firms show that the rentals are firming up just as the capital values. The firming up of prices reflects the market mood which has turned positive after a few quarters of subdued sentiment against the backdrop of a slowdown and agitation for statehood for Telangana.

Property consultant Makaan.com has come up with a report that states it’s better to rent a property rather than buying one in cities like Mumbai, Delhi and Ahmedabad. But that’s not the case for Hyderabad where properties are cheaper.

Basing its assessment on rapid urbanisation and a recovering market, the report observes that the inhabitants are confused on whether to stay on rent or spend the rent money as EMI to buy a home.

There is a general feeling that at times staying on rent is economical. However, an individual is drawn by the sentiments of owning a home. High property prices, increasing home loan rates leading to high monthly instalment and innumerable projects, though, leave him puzzled.

In the absence of any robust tool to arrive at any decision, people go by their gut feeling, or with the guidance of a close relative, a friend or an experienced acquaintance.

Hyderabad throws up an interesting pattern for Makaan.com. Compared with other metros, buying a property is cheaper here, according to the portal. . The report states that Hyderabad has become buyer-friendly. The recommendation is mainly based on lower price appreciation compared with rental appreciation.

Cushman & Wakefield in its latest report and advisory states that rents have gone up from 9 per cent to 25 per cent. Select locations in Hyderabad, such as A S Rao Nagar and Punjagutta, have witnessed incremental growth of 20 per cent over the previous quarter. Rents in A S Rao Nagar have grown the highest at 26.7 per cent.

Persistent leasing enquiries and scarcity of suitable space have pushed rents up 9-20 per cent across the city’s prime high streets and mall locations. Retail demand for space has been high on account of consumer demand and affordable rents as compared with other cities.

Reddy said that the demand showed mixed patterns depending upon the location. In the areas in and around the IT hub of Hyderabad, there is increasing demand for gated properties as opposed to standalone properties. The rents are higher by between 15 and 20 per cent in gated-community projects.

The rents for a three-bedroom property of 1,500 sq ft to 3,000 sq ft range from Rs 15,000 to Rs 45,000 a month. This is generally more when it comes to gated-community ventures.

Referring to commercial property leasing, Reddy said that the rates, which came down in 2008, have seen gradual increase in the past few quarters. The rise was sustained during the last year and there are signs of further firming up.

In IT parks and special economic zones, rents have gone up from Rs 30 a sq ft to Rs 37-38 a sq ft. For city commercial properties, while demand is good for lower floors, there continues to be mixed response depending upon the location and convenience of use.

Source :http://www.realtyplusmag.com/rpnewsletter/fullstory.asp?news_id=20306&cat_id=3

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Manipal Ace Event Management Company will organise a property show in Mangalore on May 19 and 20.

Addressing presspersons, K Narasimha Prabhu, managing director, said the ‘Mangalore Realty and Buildcon Expo’ will have participation from builders, promoters, banks and housing finance companies, among others.

Nearly 60 stalls representing various sectors of the construction and allied industries will be part of the expo, he said.

The prices of the houses on sale range from Rs 2,500 a sq ft to Rs 5,000 a sq ft, he said.

N Yogish Bhat, deputy speaker of the Karnataka Legislative Assembly, will inaugurate the expo on May 19.

T Gautham Pai, managing director of Manipal Technologies Ltd, and P M A Razak, chairman of CREDAI (Confederation of Real Estate Developers Association of Inda), Mangalore chapter, will be present on the occasion, he added.

Source :http://www.realtyplusmag.com/rpnewsletter/fullstory.asp?news_id=20308&cat_id=3

www.AbodesIndia.com
India’s Largest Real Estate Network

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