September 10, 2009 – 7:04 pm
Zuri Group Global is planning to invest about twelve hundred crore rupees for setting up five-star business hotels and luxury residential properties over the coming three years.
The investments would have a debt-equity ratio of 70:30. The company was open to raising funds through the private equity and IPO routes.
The Bangalore-headquartered company plans to open three to four hotels of 150-175 rooms each in Pune, Ahmedabad, Kolkata, Nagpur, Delhi (NCR) and Mysore entailing investment of Rs 800 crore over next three years.
Zuri was also planning to start constructing this year its luxury villas and apartments in Goa, which would entail an investment of Rs 400 crore including land cost. Zuri had acquired 300 acres for the project. The approvals for the project are in place and the villas are expected to be ready in 18 months from zero date.
September 10, 2009 – 7:03 pm
The Reserve Bank of India has issued revised guidelines on banks’ exposure to commercial real estate. The strategies say about the property where repayment of loans solely depends on the property itself and not on its expected profits.
Where repayment mainly depends on other factors such as operating profit from business operations, quality of goods and services, tourist arrivals etc, the exposure would not be counted as Commercial Real Estate.
Banks may extend funds to public agencies for acquirement and development of land, provided it is a part of the complete project. Where land is obtained and developed by state housing boards and other public agencies, banks may extend credit to private builders on commercial terms by the way of loans linked to each specific project. Banks have no right to extend facilities to private builders for purchase of land even as part of a housing project.
Bank finance can also be approved to individuals for purchase of plot, in such case a declaration is needed from the borrower that he intends to construct a house on the said plot.
September 10, 2009 – 11:37 am
Residential real estate prices are growing in Mumbai very fast. The highest price stands at Rs 97,842 per square feet for a flat at NCPA Apartments. The transaction took place about fifteen days ago in the Maker Tower B building located close to the World Trade Centre at Cuffe Parade.
In November 2007, the largest-ever residential transaction on record was completed when a four-bedroom flat at NCPA Apartments at the Nariman Point end of Marine Drive fetched a price of Rs 34 crore.
September 8, 2009 – 11:53 am
New Delhi has been considered the business of real estate in India. With the growing number of students, tourists and bureaucrats, the real state of Delhi has become an area offered in India. Apartments, houses, land, agricultural and industrial lands, industrial and residential plots, are the main segments in which the real estate industry in New Delhi is thriving. Real estate prices in the city depend on a number of factors, including the location, accessibility, etc. Tourists look out for accommodation that is close to historic monuments and, secondly, the employers look out for residential properties that are easily accessible from the airport, train station, etc. Real estate demand in Delhi has increased more than ever. It has become the preferred place for foreign direct investment and many multinationals have established their headquarters at the site and adjacent areas. The search for a real estate agent recognized as offering real estate in New Delhi, according to your budget and needs. Beyond this, there are some other important factors such as strong economic growth, the recovery of financial markets and investor friendly policies of the government will also increase the demand for real estate in the city.
September 8, 2009 – 11:04 am
The real estate recovery story is being driven by the residential segment, but contrary to the claims made by a number of developers that end-users are their main buyers, the current trend is being driven by investors.
Investors are back in good numbers and before the curve goes up, they want to buy. Some who have bought are already hoping to book profits during this Diwali. This could be a precursor to further improvement in investor sentiments, since investors would take this as a sign to look towards a sustainable run in the future.
Investors moved away from the residential real estate market when the market crashed last year and many have not been came back. The last few months though have seen a number of affordable launches at price points, which have stimulated the market. Most developers have launched mid-income housing in the Rs 20-40 lakh range, which has created a movement.
September 7, 2009 – 1:52 pm
Though realty prices across India are still smooth, Mumbai’s realty market has surely started heading north. Realtors in Mumbai have hiked prices for their developments by 5-15%, depending upon the location. Modern India Ltd, a Mumbai-based realty company, has finalized the sale of 4 residential flats, sized 2,100 square feet each at its high-end Belvedere Court, Mahalaxmi, at a price of twenty-five thousand rupees per square feet. Recent research reports (Market Beat) show that comparable flats (Vivarea, Planet Godrej) in the vicinity fetched between Rs 19,400 and Rs 20,000 per square feet, which clearly indicates a price rise of 25% in that area. Though prices had declined only by 30-35% in Mumbai and its suburbs, they are again moving up and still demand is pouring in, which is beneficial for developers.
September 3, 2009 – 5:30 pm
The common and simple terminologies used (in fact misused) and often discussed in real estate industry generally end up into lots of confusion.Our aim is to provide an information for a common man having some kind of interest in sale /purchase or renting of properties.Surely you will find it useful:
A. Built-up area: It refers to the entire floor area including carpet area, walls, lobbies and corridors, atrium areas and basement.
B. CAM: CAM stands for Common Area Maintenance. It includes maintenance of hallways, pathways and utilities.
C. Cap rate: This is also known as Capitalization Rte. It is the return on investment (ROI) on the property. It is measured by the formula: Purchase Price / Net Operating Income from the Property.
D. Carpet area: It is the actual usable area within the walls of the floor.
E. Cash on cash: It is the annual percentage return of your down payment not including appreciation.
F. CPI: The Consumer Price Index is used to calculate the annual rental increase so as to compensate for inflation.
G. Efficiency ratio: Efficiency ratio is generally expressed as a percentage of carpet to super areas of the property.
H. FSI: FSI stands for Floor space index is the quotient of the ratio of the combined gross floor area of all floors excepting areas specifically exempted under these regulations to the total area of the plot.
I. Full service lease: This is a lease where the tenant pays rent to cover everything including utilities.
J. GLA: GLA stands for Gross Leasable Area. This is the total rentable area.
K. Gross lease: This is a lease where the renter pays only rent and the landlord pays the taxes, insurance and maintenance.
L. LOI: LOI stands for Letter of Intent. It is a non-binding offer letter to buy a commercial property.
M. Maintenance charges: These are charges taken by the maintenance society towards the maintenance of the property.
N. Market value: Market value of the property is the price that the property commands in the open market. It is calculated by the valuation process which works on “demand and supply” principle.
O. Mixed use: These are commercial properties with retail on the first floor and apartments on upper floors.
P. Registration charges: These are the fees associated with getting the legal title registered in your name. This legal activity is conducted in the sub-registrar office.
Q. Stamp duty: Real Estate Stamp duty is a tax collected by the Government of India. Stamp duty is based on the market value or the agreement value whichever is greater.
R. Sale deed: Sale deed is the process by which the seller transfers all the rights on property to the buyer.
S. Super area: Super area is the entire area of the building including carpet area, walls, lobbies and corridors, lifts, staircases basements, and other atrium and utility areas.
September 3, 2009 – 5:10 pm
Real estateAs we all know that property buyers are coming back to market, this time can be marked as market revival time. Once again the buyer has lots of choices and the seller has more profit from dealing. After observing the increase in demands in real estate industry, developers are all set to increase the prices of realty projects. If we talk about real estate companies, almost every company including DLF, are working on the same strategy.
With the wish to see real estate at its best in near future, I hope that the buyers will have more and more choices available to fulfill their needs.
