Recession-hit Indian Real Estate Sector Crawling towards Recovery: E&Y

Recession-hit Indian real estate sector is crawling towards recovery with the return of end-users as well as institutional investors in the market, consultancy firm Ernst & Young has said. “The real estate sector is generally looking positive now. End-users are back in the market. Several developers are announcing new projects. Institutional investors, particularly private equity funds, are starting to look at projects for investment,” E&Y Associate Director (Real Estate Practice) Mr Chintan Patel said.

The sector fell into a deep crisis after the economic meltdown and coming back to buoyancy was delayed as buyers’ preferred to “wait and watch” before taking the buying decision. Mr Patel said that end-users are no longer shying out of the market as the fear of further economic slowdown and job losses have subsided. Developers are also now more focused on the need of the consumers and a few of them have announced new projects, pa rticularly in the affordable housing segment. Read More »

Hyatt to Launch 5 New Hotels in India

Chicago-based Hyatt Hotels Corp and the Indian real estate developer DB Hospitality Pvt. Ltd., part of DB Group, announced yesterday that Hyatt will operate five new hotel properties in India between 2010 and 2014.

The properties to come up include- Park Hyatt Mumbai, Grand Hyatt Goa, Grand Hyatt Pune, Hyatt Place Pune and Hyatt Place Mundra.

DB Hospitality will develop and own the properties, which will be in major business centers and Hyatt will manage them.With this decision, the global hospitality company seeks to expand its footprint in what it feels is the world’s most vibrant emerging market.

“The introduction of five new Hyatt properties in India, one of the world’s most vibrant emerging markets, illustrates our commitment to expanding our global footprint,” said Ratnesh Verma, senior vice president of real estate and development for Hyatt. “We are excited to provide our guests with access to our world-class, preferred brands in these increasingly popular markets in India.”

Hyatt has operated properties in India since 1983. Currently, Hyatt manages five hotels in India, including Park Hyatt Goa Resort and Spa, Grand Hyatt Mumbai, Hyatt Regency Mumbai, Hyatt Regency Delhi, and Hyatt Regency Kolkata.

The five new Hyatt properties will include:

• Park Hyatt Mumbai, projected to open in the first quarter of 2014, will include 255 guest rooms and 55 serviced apartments. The hotel will be part of the iconic 125-story India Tower located on Marine Lines in South Mumbai. Foster and Partners, London has been selected as the leading designers for this full-service hotel, which will include exclusive banqueting and meeting facilities.
• Grand Hyatt Goa, under construction and projected to open in the third quarter of 2010, will include 314 guest rooms. The hotel will be located in “Aldeia de Goa,” a 140-acre mixed-use development in North Goa that features a half-mile beachfront and excellent views of the Zuari River. The hotel, which will feature approximately 35,000 sq. ft. in banquet and meeting facilities, will also include extensive dining and entertainment options.
• Grand Hyatt Pune, projected to open in the third quarter of 2011, will include 325 rooms and multiple dining, recreation, banquet, and meeting facilities. The hotel will be part of the “Orchid Centre” development and in close proximity to the Pune Golf Course and other major commercial developments.
• Hyatt Place Pune, projected to open in the first quarter of 2012, will include 130 rooms, a multi-cuisine restaurant, meeting facilities, a fitness center and a pool. The hotel will be located within the Rajiv Gandhi Infotech Park at Hinjewadi, a prominent software hub.
• Hyatt Place Mundra, projected to open in the third quarter of 2013, will comprise of 150 rooms, a multi-cuisine restaurant, meeting facilities, a fitness center and a pool. The hotel will be located in the Special Economic Zone at the Mundra Port, which is the largest private and multi-product port in India.
  • source – http://www.indianwineacademy.com/item_5_353.aspx

Returning NRIs boost demand for residential property

An estimated 25 million NRIs living in 130 countries have remitted US$52 billion so far this year. In fact India topped the list of countries in
Realty remittance flow followed by China and Mexico, according to World Bank report on Migration and Development Brief.

Migrant remittance flow to developing countries will be around $317 billion this year. It was $338 billion in 2008, higher than the previous estimate of $328 billion. A substantial portion of the NRI/PIO investment was directed towards Indian real estate.

The impact of global slowdown, job losses and unviable job offers has necessitated a section of NRIs to return to Indian shores. Time was when Gulf NRIs were bristling with confidence on noticing certain Gulf countries like Dubai in the UAE, Qatar and Kuwait changing local land laws to permit expatriates to invest in local real estate.

While a few HNIs had invested, others could not afford the high cost of local real estate and felt that they were left out in the race. But times have changed now.

source – http://economictimes.indiatimes.com/markets/real-estate/realty-trends/Returning-NRIs-boost-demand-for-residential-property/articleshow/5317267.cms

Godrej to build India’s first green township in city

AHMEDABAD: Godrej Properties Limited (GPL), a real-estate arm of conglomerate Godrej Group, will launch India’s
largest and first green township project in January. The eco-friendly project is coming up near Nirma University on Sarkhej-Gandhinagar road.

Adi Godrej, chairman Godrej Group, said that GPL has inked MOU with Clinton Climate Initiative (CCI) programme for the Ahmedabad township project to be developed in a joint venture with local partner Siddhi Group on about 225 acres of land.

Godrej was in town for the company’s forthcoming IPO. Interestingly, Godrej Garden City’ (GGC) is one of the 16 real-estate projects in the world selected by CCI, for climate positive development. Godrej group is also founder member of Indian Green Building Council (IGBC). The company will avail green building ratings for GGC from leading agencies.

The project will completed in a phase manner over next ten years, ending with 20,000 dwellings in the price ranging from Rs 20 to 35 lakh during the initial phases. However, the company also plans to build smaller flats worth Rs 10 lakh in the later stages, he said. The work for the first phase is expected to finish in the next two years with 500 dwelling units, mostly two and three BHK.

Apart from the use of solar power, water recycling and harvesting, GPL would use fly-ash bricks and develop many gardens, including a 10-acres park, said Milind Korde GPL, managing director. Amenities like sports complex, club house, schools, hospitals and high street shopping areas are also planned, he added.
Hyderabad based MP Rao, a green building expert and member of IGBC steering committee, said that as of now there is not a single green-integrated township in the country. In fact, IGBC is working on a draft for Green Neighbourhood Rating System to give ratings to upcoming townships, said Rao.

source – http://timesofindia.indiatimes.com/city/ahmedabad/Godrej-to-build-Indias-first-green-township-in-city/articleshow/5306093.cms

Omaxe May Exit Dubai Residential Projects‎

NEW DELHI — India’s property developer Omaxe Ltd. said Friday it will likely exit two residential projects in Dubai because it is yet to get possession of land from Dubai’s real-estate company Nakheel PJSC.

Omaxe will also seek a refund of about 500 million rupees ($10.6 million) paid to Nakheel as the first installment for buying land for the projects, Rohtas Goel, the Indian company’s chairman and managing director, told Dow Jones Newswires by phone.

“They (Nakheel) have put the projects on hold,” Mr. Goel said. “We have an exit option and if we do decide to exit the projects, we will seek refund of 500 million rupees from Nakheel.”

Dubai’s debt-laden government said Wednesday it will restructure Dubai World–a conglomerate spanning real estate, ports and leisure–and will seek a six-month “standstill” on its debts, including a $3.52 billion Islamic bond due December issued by its unit Nakheel, which is developing Dubai’s iconic palm islands projects.

Omaxe announced in June 2008 that it will spend a total of about 28.50 billion rupees building two residential projects in Dubai, its first investment in the Middle East.

Omaxe plans to invest about 13.5 billion rupees in the first project at Jebel Ali through a special purpose vehicle, Golden Crescent RED and General Trading Ltd.

The second project, involving an investment of about 15 billion rupees, is to be built via another special purpose vehicle, Marine Sands Ltd.

Omaxe has set up a wholly owned subsidiary, Rohtas Holdings (Gulf) Ltd., to implement its foray into Dubai

Sources – http://online.wsj.com/article/SB10001424052748703499404574561200632635142.html?mod=googlenews_wsj

Indian Real Estate state of affairs & Its consequence On Buyers

The  India real estate market  is going through a phase of radical change in this 21st century. It is bring both residential &  commercial property buyers good chance to cash on such opportunity. To one side from metro cities, smaller towns in remote areas have also drawn attention from major real estate developers thus bringing immediate construction activity. Some real India property players are also in the race to bring India a better future by changing the face of even satellite towns. So Indians can hope to see shaping new India with construction of more residential complexes, shopping malls, skyscrapers and new infrastructures, banks, hotels etc everywhere including the places where they are most unexpected so far.
The real India property market is now reaping the benefit of foreign direct investments, the backing of rich & NRIs. Even some of the International commercial property developers have started setting up their base in every nook & corner of India thereby bringing growth to Indian realty. It is clearly reflected in cities like Bangalore, Goa, Mumbai, Hyderabad, Pune, Delhi & even in cultural rich towns like Jaipur, Udaipur, Cochin Y much more. The industrial advancement has brought about a surge in the commercial property development in the recent years. More number of foreign buyers is bring into being interested in buying the cheap commercial property located in the rich & diversifies enlightening land of India. With this, real India property market is witnessing a sudden rise in the number of commercial property buyers. The commercial properties are in great demand these days not only in India but also across the world to meet the rising industry demands as a sheer effect of globalization. Investing in the commercial property sector is considered a bit safe than in the stock market as there is no conviction. When property buyers give a thought to all such things, they dont hesitate either to invest in Indian property market. To their added advantage, an ever growing number of foreign buyers are investing huge bucks in India realty while buying property of their choice.
Buyers usually have to face the problem of how to find a money-making property deal in India which should be done firmly by keeping an eye on the cost & legalities involved in it. Legalized property developers & brokers are always proved to be s good source which buyers can rely on for buying commercial property. The buyers have to take care of many legal formalities & get possession of several important documents like Title Ownership Documents. Getting a stamp duty on the property from a local court confirms their property buying further.

Realty back in business

Bangalore: Have cash will buy, seems to be the catch phrase in corporate India where real estate is concerned. With Central Business District (CBD) valuations dipping 25-30% from their peak levels in 2007-08, companies are going in for outright purchase of office spaces than renting them. Standard Chartered Bank, media-company Sun Network, IT giants Oracle and Symphony Services have all bought up or are close to buying properties in CBD areas. The trend is mainly seen in Bangalore, Delhi, Pune, Chennai, Mumbai and Kolkata.

Early this year, Bangalore realtor Prestige Group sold 60,000 square feet of prime property to media conglomerate Sun Network.

Confirming this, Irfan Razack, chairman and MD of Prestige Estate Projects said, “We had constructed built-to-suit spaces and now corporates with long term business plans are willing to buy built-up properties.”

IT giant Oracle plans to buy one million square feet of office space in one of the upcoming projects of Bangalore-based real estate developer, Brigade Enterprises, for Rs650 crore.
In Q3 of 2009, Godrej Properties sold 52,000 square feet in Godrej waterside in Kolkata to city-based diversified business group Rose Valley. Early this year, Standard Chartered Bank also moved into new properties in Gurgaon, Bangalore and Mumbai.

According to an analyst, cash-strapped developers too are finding this a better prospect to improve cash flows than keep vacant properties. But, according to Anuj Puri, chairman and country head of Jones Lang LaSalle Meghraj, corporates are taking advantage of the fact that valuations could pick up and are making hay while the sun shines.

Goutam Chakraborty, regional director-commercial lease, Colliers International said almost all developers are willing to offload commercial properties. Buyers too are bargaining hard. It will not be too far fetched to say that the slowdown has actually proved to be a boon of sorts for companies looking at cost-effective commercial spaces.

source – http://www.dnaindia.com/bangalore/report_realty-back-in-business_1314448

Oracle, NetApp look at exclusive campuses

BANGALORE: Corporate India’s growth plans are being cemented on Bangalore’s real estate turf. In the last three months, hectic parleys between developers and corporate entities have been taking place over possible land buys or lease agreements.

There has been speculation about Oracle looking to pick up a million sqft of space in Bangalore. NetApp is said to be looking at buying land in Whitefield. According to sources, NetApp India, the Indian arm of the global data storage equipment maker NetApp, is in talks with DLF over a possible 15-acre land buy in the IT hub.

DLF, which was thinking of constructing an IT Park on this particular land parcel, but has now decided to hive it off. Brokers in the Whitefield belt told TOI that the prevailing land rates in the area, where this particular land parcel is located, is around Rs 8 crore to Rs 10 crore an acre.

So if the deal goes through, NetApp would spend between Rs 120 crore to Rs 150 crore. The company currently operates out of a leased facility in the Embassy Golf Links Business Park.

Several real estate consultancy firms told TOI that Oracle and NetApp are the only companies that are looking at outright land buys at the moment. “We expect these deals to go through by either December or before the last quarter of the ongoing fiscal,” said a source.

A senior real estate consultant, who requested anonymity, said, “There are a whole lot of other companies looking at leasing office space between 100,000 sqft and 200,000 sqft.”

Nitesh Estates expects to sign leasing agreements with pharma, insurance and banking companies for over 100,000 sqft of space in the coming three months. Quintiles, a clinical research company , is said to be among these.

So what’s driving this sudden interest in real estate ? The Bangalore real estate market is seen to have bottomed out and a slow revival is on the cards, with realty prices heading up. “Since prices are far less than what they were, by around 10% to 30% as compared to 2008, companies are looking to cash in before another price rise cycle sets in,” said a developer who is currently talking with an IT company on a possible land sale.

Prestige Group and Embassy Group are two other real estate companies that are said to be in talks for the sale of prime land parcels to corporate entities. The Bangalore real estate market is seen to have bottomed out and a slow revival is on the cards, with realty prices heading up.

In the last three months, hectic parleys between developers and corporate entities have been taking place over possible land buys or lease agreements.

Source – http://economictimes.indiatimes.com/infotech/ites/Oracle-NetApp-look-at-exclusive-campuses/articleshow/5250009.cms

How To Find US Real Estate Agents

Finding US Real Estate Agents is not hard � there are literally millions of them all over the web. Finding ones who are qualified, and will understand the complexities of foreign investing � well, that�s a little harder. Here are the 3 ways you can ensure that you find a competent professional to help you in your search for buying property in the US.

Look for a Realtor, not a real estate agent

Though people use these terms interchangeably, there is actually a big difference between the two. Just in case you didn’t know, only the Realtor is obligated to comply with the Realtor code of ethics even though it is licenced to sell real estate just like a real estate agent. The code is a much stricter set of rules, and helps add another layer of protection to your real estate transaction.

Look for a Buyer�s Agent

Most states in the US allow agents to practice Dual Agency, meaning they can represent both the buyer and the seller in a real estate transaction � but this does not offer you an advocate exclusively on your side.

The best thing about a buyer’s agent is that they are obligated by law to do whatever is in your best interest, without costing you anything. (In the United States, the seller typically pays real estate commissions).

Of course, there are times you may end up with dual agency. For instance, your Realtor could be the listing agent on a piece of property you fall in love with, and choose to purchase. Nevertheless, in most cases, you can better protect your interests by finding an agent who will work exclusively on your behalf.

Find an experienced agent familiar with foreign investing

In most areas of the country, particularly in hot US property markets, finding realtors with experience in foreign transactions is not hard. You will find that a lot of realtors specialize in this type of market and are knowledgeable about the laws and regulations that are involved with these types of real estate transactions.

The more years of experience an agent has, the more familiar they are with problems that might arise, and how to expedite the real estate process. They are also familiar with their market, and know the neighborhoods most likely to experience a surge in property values.

As a foreign investor purchasing property, the agent you choose is very important. Choosing the wrong one can result in financial pain and long delays. Choosing the right one will make the whole process smoother as well as improving your return on investment. In fact, probably the number one factor that will affect the success of a real estate transaction is finding the best qualified US Real Estate Agents for your purchase.

Source – http://www.articlealley.com/article_1238343_33.html

‘India needs Rs 3.6 lakh cr investment in housing in 5-yrs

MUMBAI: India needs Rs 3.6-lakh crore of investment over the next five years to construct an additional 2.65-crore housing units for six crore citizens, a top HDFC official said.

“Over the next five years, we need 26.5 million additional housing units, investment requirements of over Rs 3,60,000 crore and need to re-house 62 million persons who live in urban slums,” HDFC, Joint Manging Director, Renu Sud Karnad, said at a function here.

Noting that real estate sector was a major contributor to national growth, at 8.86 per cent of GDP, Karnad said 8-10 real estate IPOs are expected to mop up around Rs 230-billion (Rs 23,000-crore) over the next one year.

The housing sector, if priced correctly, is expected to draw enormous demand in the period ahead, Karnad said, adding that any saturation in the sector is unlikely in the foreseeable future.

“Given the acute housing shortage, it is unlikely that there will be any saturation in the market for a long time to come,” Karnad said.

Observing that action in the real estate sector is decisively shifting from the metros to the smaller cities, Karnad called for increased commitment to the housing sector from the market participants.

“We have to seriously question ourselves about our commitment to housing. We are indeed faced with a series of great opportunities brilliantly disguised as impossible situations, but we should not give up,” she said.

Source – http://economictimes.indiatimes.com/markets/real-estate/news-/India-needs-Rs-36-lakh-cr-investment-in-housing-in-5-yrs/articleshow/5244594.cms