Category: Property Investment

Real Estate Investment In UP Rises, Report

According to the latest report by the Associated Chambers of Commerce and Industry of India, real estate investment in Uttar Pradesh has risen slightly.

Uttar Pradesh saw real estate investment rising in the state, reports the Associated Chambers of Commerce and Industry of India. The apex body of industry has added that India as a whole has seen a reduced level of real estate investment. Read More »

Shilpa Shetty Launches Groupco to enter realty

Shilpa Shetty is planning to expand her business to real estate. Bollywood Diva has launched Groupco for footing into residential construction.

Groupco Developers is the latest venture of Shilpa Shetty. She has been into business for a quite long while. She is one of the favorites for those who love cricket just because she co-owns Rajasthan Royals team along with her husband. Read More »

TVS Enters Real Estate Business; Project Launched in Chennai

Leading auto and two-wheeler developers TVS Motors has entered into the real estate business. TVS group has launched their first residential project in Chennai.

By launching their first residential project in Chennai, TVS Motors; a leading auto and two-wheeler developers, has entered real estate business. As their stepping stone they have developed a residential project in Chennai. However this has been considered as one of the major expansion policies of the group. Read More »

Realty Sector Saw Faded Interest Of Private Equity Firms

Realty sector in India witnessed a deep fall in the investment by Private equity firms in 2012. Realty sector currently faces faded interest of private equity firms.

A leading global accounting firm Grant Thornton reported that the private equity firms have lost their interest in the realty sector and infrastructure. In 2012 nearly $ 7.4 billion was invested by the private equity firms. Compared to the $ 8.8 billion private equity investment in the year 2011, the investment of 2012 is lower. Read More »

AIG Global Aims Residential Development; Buys RMZ’s Stake

AIG Global, a New York-centered private equity giant, has purchased RMZ Corp’s 50% stakes in their Hyderabad mall project.  The private equity giant plans to turn the mall project to a residential project.

AIG Global; after gaining Bangalore-centered real estate group RMZ Corp’s 50% stakes, has now plans to turn the stalled mall-cum-office project into a residential project. The mall-cum-office project, which was supposed to be finished by the first quarters of 2012, has been stalled due to some undisclosed issues. Read More »

Foreign Investors Expected To Invest More In India

Jones Lang LaSalle predicted that this year India will have more foreign investment. JLL reported that foreign investors are likely to enter India with huge investment plans.

Jones Lang LaSalle, one of the leading global real estate consultancy firms, reported that India will have greater amount of foreign investment in the forthcoming years. According to JLL foreign investors are seeking for a chance to enter the realty market of India. Read More »

Real Estate Shares Fall Due to Sluggish Realty Market

Real estate shares face heavy pressure of selling due to the sluggish real estate market. The pressure was all the more accelerated when the BSE real estate index closed at 1,822.14 in last week.

Real estate shares fall by 3% and this sector faced the biggest fall in the share- market. Due to profit booking the real estate shares are sold under heavy pressure. The sentiment of the real estate investors was adversely affected when September experienced the ten month’s highest inflation of 7.8 %.

Among all the other sectors real estate was the worst hit as the sector faced a 3% decline. There was a steep decline of the shares of all real estate majors as well. DLF shares were sold at Rs.208 after facing a 4.8% decline. Read More »

Real Estate Investors To Benefit As AMP Launch India Office

With the plan to expand worldwide and provide better services to the real estate investors, AMP Technologies opens offices in India.

AMP Technologies, led by Sabeer Bhatia, is a software and Services Company by nature. The firm has announced launch of its India office. The firm plans to employ around 1,000 employees by 2015. The firm strives to aid and serve all real estate investors which are formed across the world.

AMP Chennai office will avail various sorts of information to the real estate investors. The investors can access to this real estate information with any form of computer. The information is available even on mobile devices as well.

Real estate investors need not install any software for accessing any information. AMP Technologies functions without these. The services of AMP enable the real estate investors to maintain and remain up to date with the latest information.

AMP will offer better service worldwide to all real estate managers. Hotmail co-founder revealed that AMP aims to be the top service provider of the entire world. For this and with this aim AMP will provide best possible solutions and services to all the real estate managers.

Sabeer Bhatia and Neel Naicker founded AMP Technologies in the year 2010. From the very moment of its inception to the present moment a lot of R&D had gone into developing its products. AMP Co-Founder and CEO Mr. Naicker revealed this.

AMP Technologies had the plan to offer offshore services to the commercial real estate investors in the beginning half of 2012. The offshore service would cover all real estate investors, operators and owners.

The services will cover the areas of cost-effective measures, lease administration, etc. Besides it will also deal with financial and accounting matters. AMP Technologies plan to expand their services will generate nearly 1000 employment opportunities. At present AMP’s Chennai office has only 250-seat capacity.

Nokia Head Office Sold to Real Estate Investment Firm

Real estate investment firm- Exilion is said to purchase the headquarters building of Nokia. The deal is expected to be fixed for a price of Rs.1218 Cr.

The financial crises of Nokia prompted the leading handset makers to sell their head building at Espoo, in Finland. Nokia faced severe setback from its opponents like Samsung and Apple. The latest reports show that the handset giant has lost its handset market to Samsung. Read More »

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 »

Metro Connectivity and Real Estate Prices Go Parallel.

Metro connectivity and property rates in the capital goes hand in hand , its just like they run on parallel tracks as right from the announcement of new metro connections , property rates follows an upward swing. With Delhi metro gearing up for the Phase III construction that will cover areas like Vasant Vihar, Dhaula Kuan, Munirka , Kalka Ji , lajpat Nagar , Botonical Garden (Noida) , real estate prices are expected to see a major rise in the prices. Metro certainly affectes real estate as it is a major factor to provide a safe and comfortable mode of transport. People prefers homes situated near the metro stations. How ever since the prices have already increased so much that it will be difficult to say how much impact the new lines will have now. Consultants further says that properties which are located near the Metro stations will have the maximum increase in the real estate price.

The entire scenario can be explained in terms of a U curve where in right from the announcement of the projects the price tends to go upwards and then it declines when the construction is underway and again goes up when the project is complete. On an average , a property may see 20-30 per cent hike in price over three years. Proximity to the station may also effects an increase of 35-40 per cent. Due to increase in the rates of properties which are near to Metro stations , the Municipal Valuation committee constituted by Delhi Government has also adviced that the residential colonies within half a KM radius of Metro line would be upgraded by one level since they have witnessed the maximum amount of Infrastructure development.

Wise Decisions In Realty Dealing

Proper documentation is one of the most critical step in the process of property acquisition. A promoter should enter into written agreement to sell with each of the persons who are to take or have purchased property.  The agreement should contain particulars of the property and also annex related documents.

In case of a property, yet to be constructed, the agreement must contain liabilities of the promoter to construct it according and specifications approved by the local authority.  The agreement should also contain possession date, money to be paid, intervals at which installments are to be made,  stages of construction, common areas and facilities,  percentage of undivided interest in the common areas and facilities escalation clause,  penalties or damages payable in case of delay in completion of project beyond the agreed time period. Copy of title certificate, approved plan and specifications with the list of fixtures and amenities including provisions are the few documents that should be demanded with the agreement.
A promoter, while he is in possession and has to pay all out-goings including rent, taxes and interest on any mortgage or other encumbrances, till he transfers the property to the buyers .  It is also mandatory for a promoter to convey the land in favor of an association of owners within a specific period of completion of the project. A declaration by the promoter should be there in the sale agreement that he has not entered into any other agreement to sell, lease or license with any other party. It also needs to be specified whether the property is vacant or in possession of any other party other than the seller.
A buyer should ensure that these formalities are taken care of by the builder while entering into a sale agreement.

De-stressing Destinations

The new craze of Delhi’s neo-rich and the corporates to develop holiday or de-stressing resorts to Delhi, Gurgaon and Manesar has caused a spurt in the prices of lands, particularly those located along national highways and also in those along some link roads.
According to the reports available with the real estate agents at Gurgaon and Faridabad, the land rates have crossed Rs 50 lakh to Rs 75 lakh per acre. During the last few months, no-objection certificates have been issued to some dozen parties to develop farmhouses-cum weekend resorts in the Haryana part of the National Capital Region (NCR). Such NOCs are not granted for lands situated within 2 kms of the Kundli- Manesar-Palwal multi-lane global corridor (under construction) and for land pieces which are less than 2.5 acres in size. These farm houses or de-stressing resorts are, no doubt, eating into the green lungs of this prime region.
According to an executive of the Federation of Estate Consultants of NCR (Foenc) while earlier, the first choice of a VIPs and the affluent class of the national capital was the areas near Chhatarpur and the neo-rich had engulfed the prime fertile land on Faridabad-Sohna road and Sohna-Taoru road touching the KMP corridor, now Delhiites are sourcing land along other roads in the region.
The first VIP to have developed his rural retreat was former Prime Minister Chandra Shekhar, at Bhondsi, on the Gurgaon-Sohna road. But later, the neo-rich began acquiring big chunks of fertile agricultural land from Kundli to Karnal (via Sonipat and Panipat) to build farmhouses.
In a related development, the tourism department of Haryana has also initiated steps to promote ‘farm tourism’ in the NCR, conforming to the recently revised norms in this regard.

It is now official that Haryana’s tourism department has identified some 20 farms for the public-private partnership initiative. The farmhouse owners have committed to providing boarding and lodging facilities to tourists at reasonable rates.

Nashik, New Realty Destination

Sizzling by the virtue of its all round development, Nashik has now become one of the hot property destinations in Maharashtra. The exclusive residential projects that are coming up in various external parts of the city are adding to the demand in the realty sector in the city.

Godavari Ghat Panchvati Nashik
Photo by Durgesh Paliwal
Not long back, the outskirts of the city used to be least preferred locations for residential purposes. However, over a span of few years the transformation in this area has put many homebuyers in dismay, which is today being considered as premium residential location of the city, with malls, multiplexes, colleges and international schools, finance offices, eateries, fitness centers, in its vicinity.

The residential and commercial projects here too are as exclusive and so is the stream of investors in this location. Apart from homebuyers seeking high-end amenities in the city’s best location, even corporate houses are showing keen interest in this area.

Of late, Nashik has become a sought after residential area, for those who don’t want to be a part of the hustle bustle and the traffic at the end of the day but yet have quick access to facilities are opting for the city. Upcoming areas in the city are in demand as far as property is concerned. The future SEZs are the added attractions in the city, with improved public transport system.

Ekta Group, a Real Estate Company has launched its Ekta Greenville project here and this has followed by a spate of construction activity there. People who have to commute between Mumbai and Nashik prefer these locations on the highway for residential purpose.

As of today the most sizzling stretch with regard to the property market is the stretch between Dwarka and Fame Theatre and the areas adjacent to it, accessible from Nashik Road Railway Station, Sinnar, Dwarka or any other part of the city. Buying a property in the external developing areas of a city is always a good proposition, since you get to have amenities of your choice that many not be possible in the heart of the city due to space constraints.

Futuristic Investment

The demand for more capital appreciation in the wake of the rising property prices coupled with home loan rate hike has dampened the buying spirit, in ways propelling the demand for rental property in India, realizing the immense potential of rental properties in India. Rentals values in tier I & II cities has witnessed an increase of 20-25% in recent times, resulting in real estate agents devoting themselves to negotiations for rented homes more than ever. The capital value or cost of flats has almost doubled in the tier I cities where prices went up twice that earlier, in the residential segment.

Residential rentals for flats/apartments, independent houses and paying guest accommodations being more popular in tier I and II cities, have far greater avenues for those who are on transferable job or looking for job opportunities. This has created a good market for those seeking to invest in a property for rental purposes, ensuring good rentals regularly. Terrace flats, luxury apartments and home, bungalows, villas, penthouses and condominiums are gaining ground as a popular choice; and considered a safe investment option.

Trends in the commercial sector are momentous as the key focus among the investors is to rent a commercial space instead of buying and facilitating low risks and less worry on maintenance. Commercial lease agreements are long-term, hence buying good space in high-quality development and leasing it to a good brand is a wise investment decision. Usually, commercial lease agreements specify a 15% escalation in real estate rental every three years which is a good enough yield.

For those considering regular rental returns rather than capital appreciation, mall space has the distinction to be an excellent option. Real estate developers are in favor of leasing out commercial property. Service Apartments which come in the form of furnished apartments have also become in vogue. Moreover, the commercial rental market is witnessing the rising trend of mixed use developments. The product mix will have malls and office spaces with service apartments. Some of the companies are setting a trend of leasing out their service apartments.

The present scenario of leased out industrial properties/ plots of land for projects and that of the residential apartment rentals is looking up. The new concepts being developed are redefining the traditional ideas that were synonymous with rental market in India. In future, a constant watch on rental developments in India will provide serious opportunities which will spell the success of the real estate rental business.

Unity Infra gets 55 crores’ order

Bombay Stock Exchange
Construction company, Unity Infra projects said that it has received a contract worth Rs 54.56 crore from Amanora Park Town for construction-related works. The scope of work includes construction of six towers among others, Unity Infra projects said in a filing to the Bombay Stock Exchange. The project is scheduled to be completed in 29 months. Shares of the company closed at Rs 408.55, up 0.91% on the Bombay Stock Exchange.


Vatika Group announced that it will open the Westin Hotel in Gurgaon by March next year, seven months before the commencement of the Commonwealth Games in October next year. The opening of the Westin Hotel will help to meet the hotel room needs for the mega event next year as the city is already facing an acute shortage of over ten thousand rooms.
The new Westin Hotel is strategically located at the emerging central business district of Gurgaon and will provide travelers easy access to key convention and commercial offices which have started to shift towards Gurgaon area due to lack of sufficient land for development of sizeable projects in New Delhi. The hotel will feature 311 rooms, five dining outlets, 17500 square feet of meeting and function space, an approximately 16000 square feet health and spa center, as well as retail outlets.
Mr. Gaurav Bhalla, Deputy MD–Vatika Hospitality, said “We have kept our commitment of completing the Westin Hotel in Gurgaon before the commencement of the Commonwealth Games by announcing its opening in next year March. Vatika has been diligent and focused to achieve and respond to the city’s increased need for lodging due to the upcoming Commonwealth Games in the City.”
The decision to venture into the hospitality business was merely an extension of group’s aim to transform all aspects of human Endeavour. Therefore we launched various brands of specialty restaurants namely the Fox, Coriander Leaf, 56 and Jing apart from the Westin tie up.
The Vatika Group has a portfolio of projects that span office spaces, retail, residential, hotels, resorts, specialty restaurants, and business centers. The group has three major township projects spread over total of approximately 1800 acres namely Vatika Infotech City in Jaipur, Vatika India Next in Gurgaon and Vatika City Central in Ambala.
The Group has also completed 90% of its first residential project called Vatika City in Gurgaon and houses 500 families. The group’s commercial projects are spread across Gurgaon and Jaipur. Gurgaon has 5 operational projects with clients like SAP, Starwood, HDFC, Xerox, Etisalat, Lenovo, Glaxo Smithkline, MSD pharma etc.

Residential property prices may go down

Knight Frank India said that prices in the residential property segment are likely to decline in a short time. Knight Frank India Chairman Pranay Vakil said, “We feel prices of residential segment may go down over a period of time”. Further he added that the residential segment may see a robust demand in certain markets and it was also a good time for property developers to invest in land.

Real estate demand at this stage is the result of investor-led demand and end-user demand. While investor demand is due to shift in money from equity markets, on the other hand the end-user demand is due to increased consumer confidence and pent-up unmet demand from the recession period. This leads to a rapid increase in demand for real estate and also in property price.

Reason behind New Delhi’s real estate hike

Real estate in India
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.

Real estate recovery story being scripted by investors

Real estate
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.

Real estate recovery is now visible

Real estate
Real estate
As 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.

Residential property becomes cheaper

What subprime crisis?  Affordable houses are everywhere.Residential property prices are expected to fall by about 10% this year. Residential property rates declined by 18% to 20% in this March. Despite this drop, buyers are watching market scenario with ‘wait and watch’ policy. This trend is likely to continue through 2009. Mr. Sudhir Nair, Head, CRISIL Research says, “Demand in the commercial and retail segment is likely to remain under stress for the next two years owing to excess supply and weak off take.”

It is believed that lower home loan interest rates would help to revive demand in the residential segment. Hence, capital values are likely to stabilise in the first half of 2010, and increase during the second half of the year.

Mutual Funds Bet On Realty

sacramento bungalowDiversified equity mutual funds are betting big on realty, the best performing category in the past one month. The construction segment has shown the highest growth in exposure in value terms in May spurting 95.53% to Rs 7565.76 crore.
Construction has now emerged as one of the most favoured sectors for mutual funds and now ranks behind refinery and banking stocks in overall exposure. Realty companies have been able to raise money through QIPs and stake sale. Their financial position has changed and leverage has now come down. DLF, Unitech and Indiabulls Real Estate are among the top additions to the portfolios of equity mutual funds in May. While DLF saw the biggest addition in quantity terms with mutual funds adding nearly 50 lakh shares, a 493.5% jump, Indiabulls saw a 151.3% increase in shares added followed by Unitech that recorded a 52.7% growth in additions.

Realty Majors Adopt New Technologies for Affordable Housing.

To make their project affordable, real estate developers are applying new techniques everyday. For example, tunnel form technique, table form technique, fly ash technique and so on.

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Yatra Capital Invests in Bangalore Real Estate Projects

Yatra Capital has invested nearly Rs 175 crore in Bengaluru-based property developments. It is Euronext listed real estate investment company. Yatra Capital has invested Rs 111.62 crore in Palladium Constructions for 30 percent stake. Palladium Constructions will develop a complex which will have both residential and retail buildings. It will develop a 1.9 million square.feet of mixed use complex. This development will comprise of 1.4 million square feet of retail space and 0.5 million square feet of residential space. This project will cost around Rs 950.12 crore. Read More »