Monthly Archives: November 2012

Air India Stumbles at Cold Real Estate Market

Sluggish Real Estate Market prevented the AI’s Plan to monetize the vacant floors in its building at Nariman Point. The bid was postponed as there was no taker for the building.

Civil Aviation Minister Mr. Ajit Singh blamed the sluggishness existing in real estate sector as a factor which blocked AI’s Plan. Tough market conditions chased the takers away and there was no one willing to take up the floors at the declared rates.

The rentals at Nariman Point are said to be higher than that of Lower Parel or at Bandra Kurla Complex (BKC). These areas are recently more preferred as these areas charge lower rentals.

Air India barely uses 6 floors in its 23-story building. Three floors are already leased and the rest remains vacant. Based on the 2011- report of Jones Lang Salle, the Air India plans to raise an amount of Rs.5, 000-Crore approximately. However real estate experts and property consultants are of the opinion that the National Carrier will have to lower the amount for gaining any takers.

According to them Nariman Point has lost its prominence with the arrival of Bandra Kurla Complex and Lower Parel. The lower rate of these areas has attracted many while the higher rate of Nariman Point distracts many.

Despite the cold wind of sluggish real estate market Civil Aviation Minister Mr. Ajit Singh remained confident of achieving the desired amount through monetizing its real estate assets. The National Carrier expects to raise a fund of Rs.5, 000-Crore approximately.

Air India plans to monetize its real estate assets in Delhi and Mumbai. So far the National Carrier has received tepid response from the takers. As a first plan, the national carrier was about to bid 11 floors (total 1.6 lakh sq. ft.) at Nariman Point.

The National Carrier further had plans to shift its Headquarters to New Delhi. Air India also planned to lease out the entire building after their shift to the capital.

Mr. Singh said that the National Carrier will be able to carry out the monetization plan. He further added that a real estate consultant is already employed to carry out its plan.

Earlier Hindustan Unilever also faced a similar situation. The Hindustan Unilever was forced to lease its building at a lower rate than they demanded. The real estate experts say this would be the same which will befall on Air India as well. As the figures say the National carrier may have to lower the rate anyway.

Indiabulls Real Estate Ltd. is to Set Office in the UAE

Indian real estate firm Indiabulls Real Estate Ltd. targets UAE NRIs. The firm expects to have more Non- Resident Indians (NRIs) as their clients.

Indian real estate firm Indiabulls Real Estate Ltd. targeting UAE NRIs, have launched an overseas office in the UAE. The real estate firm is about to launch its first overseas office in the United Arab Emirates region. Read More »

Global Stars to Endorse Indian Real Estate

Real estate developer group Homestead’s recent endorsements with Maria Sharapova and Michael Schumacher are noted as a new beginning of real estate in India.

Real estate builders have now become capable of bagging global stars to endorse their projects. However they are mainly concentrating on residential projects. Tennis star Maria Sharapova and F1 legend Michael Schumacher visited India to endorse some real estate projects. Read More »

Property Dispute Takes the Life of Real Estate Developer

Real Estate Developer Pony Chadha lost his life while trying to sort out his dispute over property. His brother Hardeep also was killed by the security persons of Mr. Chadha.

Police Sources exposed the existed- property- dispute as the main reason which led to the murders of real estate developers. Nearly 15 people have been arrested by the police. Most of the arrested are from the security personnel. The detained are questioned at Mehrauli police station where they are kept under custody. Read More »

MHUPA Regulatory Body: New Protection for Homebuyers

Ministry for Housing and Urban Poverty Alleviation (MHUPA) head union minister Mr. Ajay Maken revealed that the government is all set to introduce a new regulatory body to protect the troubled home buyers.

The MHUPA minister pointed to the fact that the LIG (Lower Income Group) homes are decreasing now. By making it mandatory for all the real estate builders that they should separate 35 % of affordable homes for the middle class families. Read More »

CREDAI Praises AP Govt.’s Online Approval of Building

Andhra Government has recently launched online approval system for real estate buildings. The Apex body of the developers- CREDAI penned it down as highly appreciable real- estate-reformation.

Single window system for approving real estate projects will speed up the delivery.  Confederation of Real Estate Developers’ Association of India had earlier blamed the red-tapism and corrupted officials as reasons of delayed deliveries. Read More »