Downed shutters and To-Let boards plastered on commercial spaces in prime business areas across the city has left the business community worried. Just when the ill-effects of recession were wearing off, the Telangana-Andhra tussle has dealt a body blow to the real estate sector.
An alarming 30 per cent showrooms have shut down over the past couple of months. The city has begun to resemble a ghost town with big establishments downing shutters as they have been the worst hit. rents of commercial plots have plummeted, and some have sold property in distress sales for meagre sums. Yet, Hyderabad’s business community is thinking twice before investing in new ventures. They prefer to relinquish properties in prominent locations in favour of land that is more reasonable.
Vishwanath K., a member of IFRA and proprietor of Corporate Real Estate, says, despite prices falling by almost 50 per cent there are no takers for large plots. “Now rents in commercial areas have fallen from Rs 120 to Rs 40 per sq feet, but there are hardly any takers.”
He says the tussle over Telangana is to blame along with recession. “While real estate prices in Bangalore, Mumbai and Chennai are finally looking up, the T-tussle has come as an added blow to the city. People are thinking twice about investing in something new. Moreover, nearly three international companies have backed out from setting up shop here,” he points out.
B. Nagarjuna, proprietor of Home Guides that specialises in private and commercial realty, says there is a perceptible change in the market. “The Telangana struggle has indeed spelt bad news for real estate as far as commercial plots are concerned. Bigger establishments in areas like Banjara Hills and Jubilee Hills have suddenly taken a hit with rents becoming too expensive as compared to the footfalls. In fact, many prefer to shift base to other parts of town,” he says.
Smaller establishments are still able to survive and he finds most To-let boards hanging on plots of 5,000 sq feet and above. “Bigger plots have been abandoned. The trend is now towards smaller outlets,” he says.
hyderabad real estate, hyderaba properties, properties in hyderabad,
Showing posts with label hyderabad real estate. Show all posts
Showing posts with label hyderabad real estate. Show all posts
Saturday, February 20, 2010
Friday, December 18, 2009
Time for realtors to accept realities
Surely, it must be a surreal feeling for those who rode the heights of real estate boom during last few years. As the boom started to crumble and with interest in property evaporating fast in the wake of a series of events from economic slowdown to Telangana and Andhra agitations, those who sold properties like hot cakes must be finding the present circumstances hard to digest.
Even before they could reconcile to the turn of events from Telangana agitation and the moves of the Centre, came the agitation in other parts. This pushed the prospective buyers, even the genuine ones, further deep into the wait and watch mode. Projects put on hold, half-completed towers, accumulating construction material and no buyers dropping in at their plush offices clearly is forcing the reality boom accept the realities.
hyderaba properties, properties in hyderabad, Real estate news, hyderabad real estate,
Even before they could reconcile to the turn of events from Telangana agitation and the moves of the Centre, came the agitation in other parts. This pushed the prospective buyers, even the genuine ones, further deep into the wait and watch mode. Projects put on hold, half-completed towers, accumulating construction material and no buyers dropping in at their plush offices clearly is forcing the reality boom accept the realities.
hyderaba properties, properties in hyderabad, Real estate news, hyderabad real estate,
Sunday, November 8, 2009
Real Estate: Buy A Flat, Get Rs 25k Per Month!!
Wondering what this is about? Well, this is the new offer that is being given by the PNR group.
The project is titled Nagarjuna Dreamland situated in hyderabad.The best part is builders have announced that if you are buying a three bedroom flat with them, they are ready to pay Rs 25000 as rent for the first two years on ready for occupation flats
It is the plight of Real Estate indeed. The recession blow to the field has carved this strategy of winning the attention of people. It is known that many have been interested in owning flats or villas for investment sake and for rental income. But looking at the present scenario, the rental values have come down and not picking up in many places. Hence Nagarjuna Dreamland has planned this way of paying a considerable rent of Rs 25000 to the customer. The loan facility is also being provided by the developers.
Real Estate experts say that it is a workable concept by developers and worthy for investors at this juncture.
The venture has state of the art infrastructure with gated community, wi-fi enabled clubhouse facilities. There will be swimming pool, kids play area, lounges, ample parking, Gym, party house etc. There are other amenities as well that the customers can choose.
The venture offers 2 bedroom, 3 bedroom, 4 bedroom apartments and also villas. So folks, grab the opportunity while you can. All you need to do is call up 040- 65699090, 93935 56690, 93935 57790.More details can be had on visiting the site www.pnr.in or emailing them at sales@pnr.in .
hyderaba properties, hyderabad real estate, Real estate news,
The project is titled Nagarjuna Dreamland situated in hyderabad.The best part is builders have announced that if you are buying a three bedroom flat with them, they are ready to pay Rs 25000 as rent for the first two years on ready for occupation flats
It is the plight of Real Estate indeed. The recession blow to the field has carved this strategy of winning the attention of people. It is known that many have been interested in owning flats or villas for investment sake and for rental income. But looking at the present scenario, the rental values have come down and not picking up in many places. Hence Nagarjuna Dreamland has planned this way of paying a considerable rent of Rs 25000 to the customer. The loan facility is also being provided by the developers.
Real Estate experts say that it is a workable concept by developers and worthy for investors at this juncture.
The venture has state of the art infrastructure with gated community, wi-fi enabled clubhouse facilities. There will be swimming pool, kids play area, lounges, ample parking, Gym, party house etc. There are other amenities as well that the customers can choose.
The venture offers 2 bedroom, 3 bedroom, 4 bedroom apartments and also villas. So folks, grab the opportunity while you can. All you need to do is call up 040- 65699090, 93935 56690, 93935 57790.More details can be had on visiting the site www.pnr.in or emailing them at sales@pnr.in .
hyderaba properties, hyderabad real estate, Real estate news,
Saturday, September 19, 2009
Realtors must tell buyers about banks' claim on property: RBI
Prospective home buyers will now know if the land on which their building stands is free of outside claims after a recent Reserve Bank of Realty
India (RBI) circular mandating builders mortgaging the land to raise money to disclose it in all advertisements and brochures.
RBI has asked lenders to ensure that all publicity material relating to the sale of real estate make a mention of the bank’s lien on the property so that home buyers are not kept in the dark about this legal claim or ‘hold’.
RBI aims to prevent prospective buyers from being lulled into the belief that the flats they own are on ‘free-hold’ land through this move.
Says Anuj Puri, country head of real estate consultant Jones Lang LaSalle Meghraj, “The RBI circular will bring transparency and accountability on the part of developers. It would also give a chance to buyers to see the viability of projects especially when the loan amount is very high.”
hyderabad real estate, Real estate news,
source:http://economictimes.indiatimes.com
India (RBI) circular mandating builders mortgaging the land to raise money to disclose it in all advertisements and brochures.
RBI has asked lenders to ensure that all publicity material relating to the sale of real estate make a mention of the bank’s lien on the property so that home buyers are not kept in the dark about this legal claim or ‘hold’.
RBI aims to prevent prospective buyers from being lulled into the belief that the flats they own are on ‘free-hold’ land through this move.
Says Anuj Puri, country head of real estate consultant Jones Lang LaSalle Meghraj, “The RBI circular will bring transparency and accountability on the part of developers. It would also give a chance to buyers to see the viability of projects especially when the loan amount is very high.”
hyderabad real estate, Real estate news,
source:http://economictimes.indiatimes.com
Tuesday, July 28, 2009
State against House panel probe on fee
The state government on Monday turned down a demand by the Congress MLA, Mr E. Pratap Reddy, for a House committee probe into the flouting of rules and charging of heavy fee by corporate school and college managements.
Members cutting across party lines expressed ire at the antics of corporate educational institutions.
An agitated Mr Pratap Reddy hit out at corporate managements but when he demanded an Assembly committee probe, the Chief Minister, Dr Y.S. Rajasekhar Reddy, signalled to the school education minister, Mr D. Varaprasada Rao, not to accede to it.
Following this, the minister turned down the demand and said that the government would conduct inquiries into the specific allegations.
It all started with the TRS member, Mr T. Harish Rao, alleging that colleges such as Narayana and Sri Chaitanya had monopolised intermediate education denying space for small players.
The TRS member questioned the rationale behind the government reimbursing Rs 30,000 for each poor student studying in corporate colleges instead of punishing the managements for levying high fee.
However, the minister clarified that the fee was for boarding, food bill and Eamcet coaching and requested members not to make an issue out of it as it would affect poor students.
Members cutting across party lines expressed ire at the antics of corporate educational institutions.
An agitated Mr Pratap Reddy hit out at corporate managements but when he demanded an Assembly committee probe, the Chief Minister, Dr Y.S. Rajasekhar Reddy, signalled to the school education minister, Mr D. Varaprasada Rao, not to accede to it.
Following this, the minister turned down the demand and said that the government would conduct inquiries into the specific allegations.
It all started with the TRS member, Mr T. Harish Rao, alleging that colleges such as Narayana and Sri Chaitanya had monopolised intermediate education denying space for small players.
The TRS member questioned the rationale behind the government reimbursing Rs 30,000 for each poor student studying in corporate colleges instead of punishing the managements for levying high fee.
However, the minister clarified that the fee was for boarding, food bill and Eamcet coaching and requested members not to make an issue out of it as it would affect poor students.
Thursday, July 23, 2009
Fate of penthouses on July 25
The officials of the Greater Hyderabad Municipal Corporation (GHMC) will meet on July 25 to decide on the penthouses pending under the Building Penalisation Scheme (BPS).
There are about 1,500 applications relating to penthouses on multi-storeyed buildings having five or more floors.
However, majority of the applicants have not submitted the mandatory “no objection certificate” which has to be issued by the fire services department and the Airports Authority of India.
The GHMC officials and the fire department will finalise the fire safety norms to be stipulated for regularisation of penthouses. Also, the meeting is expected to take a decision on relaxing norms on the fire safety equipment to be installed by the penthouse owner.
Besides, an NOC from the AAI is difficult to get and a decision on this front is also likely to be taken at the meeting, sources said.
The GHMC chief city planner, Mr Purushotham Reddy, said the meeting is aimed at listing out feasible guidelines facilitating owners of penthouses to provide fire safety equipment to get an NOC. “For this reason, the director-general of fire services will be participating in the meeting to facilitate spot decisions,” he said.
Meanwhile, the GHMC has decided to conduct BPS melas every Monday and Tuesday. The building regularisation certificates would be given on these two days every week, and pending documents along with penalisation charges will be accepted on the remaining days of the week.
There are about 1,500 applications relating to penthouses on multi-storeyed buildings having five or more floors.
However, majority of the applicants have not submitted the mandatory “no objection certificate” which has to be issued by the fire services department and the Airports Authority of India.
The GHMC officials and the fire department will finalise the fire safety norms to be stipulated for regularisation of penthouses. Also, the meeting is expected to take a decision on relaxing norms on the fire safety equipment to be installed by the penthouse owner.
Besides, an NOC from the AAI is difficult to get and a decision on this front is also likely to be taken at the meeting, sources said.
The GHMC chief city planner, Mr Purushotham Reddy, said the meeting is aimed at listing out feasible guidelines facilitating owners of penthouses to provide fire safety equipment to get an NOC. “For this reason, the director-general of fire services will be participating in the meeting to facilitate spot decisions,” he said.
Meanwhile, the GHMC has decided to conduct BPS melas every Monday and Tuesday. The building regularisation certificates would be given on these two days every week, and pending documents along with penalisation charges will be accepted on the remaining days of the week.
Tuesday, July 21, 2009
Cheating case against Maytas Hill County
Police registered a case against Maytas Hill County for cheating and breach of trust after it failed to hand over independent houses and apartments to its customers.
A few days ago, several families who had invested in the project organised a demonstration in front of Satyam Computers founder, B. Ramalinga Raju’s residence at Jubilee Hills criticising delays in the completion of the project.
The project comprising independent houses and apartments is being developed by Maytas Properties, owned by the sons of Mr. Raju.
It was initially supposed to be ready by March 2008 but work was not completed till date, according to buyers.
Police booked the case under Sections 406 (punishment for criminal breach of trust) and 420 (cheating) of the Indian Penal Code and are collecting more details from buyers.
A few days ago, several families who had invested in the project organised a demonstration in front of Satyam Computers founder, B. Ramalinga Raju’s residence at Jubilee Hills criticising delays in the completion of the project.
The project comprising independent houses and apartments is being developed by Maytas Properties, owned by the sons of Mr. Raju.
It was initially supposed to be ready by March 2008 but work was not completed till date, according to buyers.
Police booked the case under Sections 406 (punishment for criminal breach of trust) and 420 (cheating) of the Indian Penal Code and are collecting more details from buyers.
Thursday, July 16, 2009
HC refuses to entertain Maytas plea
The AP High Court on Wednesday refused to entertain the plea of Maytas Infra Ltd to implead it as one of the respondents in a petition filed against the proposed Hyderabad Metro Rail Project.
A division bench comprising Justice V. Eswaraiah and Justice P. Swaroop Reddy while dismissing the petition said there was no need to allow the petitioner to implead in the case as the government has already cancelled the concessional agreement.
The petitioners complained that the elevated Metro Rail will pass adjacent to the Secretariat and Assembly buildings posing great danger in the light of Maoist and ISI-related activities in the state.
HC seeks info on wards
The AP High Court wants to know the stand of the government on reserving wards for Backward Classes in GHMC limits in the ensuing elections.
A division bench was dealing with a petition seeking a direction that categorisation of wards of Backward Classes has to be implemented in accordance with the categorisation of BCs in the state which was done in 1970 as per G O Ms No 1793.
AP Backward Classes (A-group protection cell) Welfare Association filed the petition. Mr A. Ramalingeswara Rao, counsel for the petitioner, said mere implementation of BC reservations in the local body elections would be of little help to the most backward classes.
Students plea rejected
The AP High Court dismissed a batch of writ petitions filed by students of private engineering colleges under the purview of JNTU seeking a direction to condone shortage of attendance to classes.
Mr Ratangpani Reddy, counsel for the university, said university rules mandates a student to have at least 65 per cent attendance. While agreeing with the contentions, the court dismissed all the petitions.
A division bench comprising Justice V. Eswaraiah and Justice P. Swaroop Reddy while dismissing the petition said there was no need to allow the petitioner to implead in the case as the government has already cancelled the concessional agreement.
The petitioners complained that the elevated Metro Rail will pass adjacent to the Secretariat and Assembly buildings posing great danger in the light of Maoist and ISI-related activities in the state.
HC seeks info on wards
The AP High Court wants to know the stand of the government on reserving wards for Backward Classes in GHMC limits in the ensuing elections.
A division bench was dealing with a petition seeking a direction that categorisation of wards of Backward Classes has to be implemented in accordance with the categorisation of BCs in the state which was done in 1970 as per G O Ms No 1793.
AP Backward Classes (A-group protection cell) Welfare Association filed the petition. Mr A. Ramalingeswara Rao, counsel for the petitioner, said mere implementation of BC reservations in the local body elections would be of little help to the most backward classes.
Students plea rejected
The AP High Court dismissed a batch of writ petitions filed by students of private engineering colleges under the purview of JNTU seeking a direction to condone shortage of attendance to classes.
Mr Ratangpani Reddy, counsel for the university, said university rules mandates a student to have at least 65 per cent attendance. While agreeing with the contentions, the court dismissed all the petitions.
Wednesday, July 15, 2009
Nagarjuna to go on sans Maytas
Nagarjuna Construction Company (NCC) is preparing a plan to come out of Maytas Infra's shadow in the projects being handled by both.NCC and Maytas have joined forces in eight projects. While one of these is operational and three on the backburner, NCC is making arrangements to carry out the remaining projects without waiting for Maytas to bring in funds.
For the remaining four projects, NCC is preparing to either bring in partners in place of Maytas, or contribute the funds on its own. Critical among them is the Pondicherry-Tindivanam road project. The 36 km project is estimated to cost about Rs 315 crore, with an equity component of Rs 90 crore.
While Maytas holds about 51% in this project, NCC holds 49%. "The project is about 30% complete and we are now looking for a third partner to plug the Maytas gap. This will help us in meeting the deadline of June 2010 for operationalising the project," NCC's executive VP (finance) Y D Murthy told DNA Money.
Another project is the Himachal Sorang hydro-electric project, being jointly developed by NCC and Maytas along with SSJV Projects. Taken up with an outlay of Rs 600 crore, the three partners have one-third equity in the project. The project is scheduled to commence operations in December 2010. "Maytas has brought in about Rs 18 crore so far and the future equity from Maytas is a question. If Maytas is unable to bring in the required equity, NCC will complete the project," he said.
The Western UP toll way and Bangalore elevated toll way are the other two projects. Here, however, the work is at an advanced stage. While about 80% of work is complete for the Western UP toll way, the Bangalore project is about 90% complete.
The Western UP project was taken up by Gayatri Projects (40% equity), NCC (30%) and Maytas (30%) with a deadline to make the project operational by December 2009.
Maytas is yet to bring in about Rs 5 crore into the project. For the Bangalore elevated toll way, NCC and Maytas have partnered with Soma with one-third equity each. In this project, Maytas is yet to bring in Rs 7 crore.
"For both projects, NCC and the other partner are bringing in the money that was to be contributed by Maytas to complete the projects on schedule," Murthy said. The Brindavan express toll way in Karnataka is the only project NCC and Maytas have been able to make operational. The project, built with an outlay of Rs 247 crore, has been operational for the last three years.
The three projects on the backburner include two airport projects -- at Shimoga and Gulbarga -- and the Machilipatnam port project in Andhra Pradesh. "For the airports, it is the real estate that holds the key. These are small airports and they can't survive just on air traffic. The real estate that can be created along with the airports is crucial. These projects are estimated to cost about Rs 50 crore each. Considering the market conditions, these projects are on the backburner," Murthy said.
The Machilipatnam port project is stuck in land acquisition-related issues. The project was planned with an estimated cost of about Rs 1,600 crore spread over 6,200 acres. Along with Maytas and NCC, Srei and the Chatterjee Group too are partners. While NCC has about 25% share, Maytas has 26% equity. Srei and Chatterjee hold 49% together.
"There are land acquisition issues in the project. Even otherwise, Maytas' ability to bring in equity into this project is under question now. This project is on hold," Murthy said.
NCC currently has an order book of Rs 12,200 crore. The infrastructure major, which was focusing more on road projects, is now looking at other opportunities.
"Earlier, we used have about 25% of our order book from roads. Now, it is down to 8%. There are other opportunities in power, metals, oil & gas and mining. The focus now is on having a diversified portfolio," he explained.
The company is also pinning hopes on the freight corridor plans announced by the government for finalising its foray into railways.
For the remaining four projects, NCC is preparing to either bring in partners in place of Maytas, or contribute the funds on its own. Critical among them is the Pondicherry-Tindivanam road project. The 36 km project is estimated to cost about Rs 315 crore, with an equity component of Rs 90 crore.
While Maytas holds about 51% in this project, NCC holds 49%. "The project is about 30% complete and we are now looking for a third partner to plug the Maytas gap. This will help us in meeting the deadline of June 2010 for operationalising the project," NCC's executive VP (finance) Y D Murthy told DNA Money.
Another project is the Himachal Sorang hydro-electric project, being jointly developed by NCC and Maytas along with SSJV Projects. Taken up with an outlay of Rs 600 crore, the three partners have one-third equity in the project. The project is scheduled to commence operations in December 2010. "Maytas has brought in about Rs 18 crore so far and the future equity from Maytas is a question. If Maytas is unable to bring in the required equity, NCC will complete the project," he said.
The Western UP toll way and Bangalore elevated toll way are the other two projects. Here, however, the work is at an advanced stage. While about 80% of work is complete for the Western UP toll way, the Bangalore project is about 90% complete.
The Western UP project was taken up by Gayatri Projects (40% equity), NCC (30%) and Maytas (30%) with a deadline to make the project operational by December 2009.
Maytas is yet to bring in about Rs 5 crore into the project. For the Bangalore elevated toll way, NCC and Maytas have partnered with Soma with one-third equity each. In this project, Maytas is yet to bring in Rs 7 crore.
"For both projects, NCC and the other partner are bringing in the money that was to be contributed by Maytas to complete the projects on schedule," Murthy said. The Brindavan express toll way in Karnataka is the only project NCC and Maytas have been able to make operational. The project, built with an outlay of Rs 247 crore, has been operational for the last three years.
The three projects on the backburner include two airport projects -- at Shimoga and Gulbarga -- and the Machilipatnam port project in Andhra Pradesh. "For the airports, it is the real estate that holds the key. These are small airports and they can't survive just on air traffic. The real estate that can be created along with the airports is crucial. These projects are estimated to cost about Rs 50 crore each. Considering the market conditions, these projects are on the backburner," Murthy said.
The Machilipatnam port project is stuck in land acquisition-related issues. The project was planned with an estimated cost of about Rs 1,600 crore spread over 6,200 acres. Along with Maytas and NCC, Srei and the Chatterjee Group too are partners. While NCC has about 25% share, Maytas has 26% equity. Srei and Chatterjee hold 49% together.
"There are land acquisition issues in the project. Even otherwise, Maytas' ability to bring in equity into this project is under question now. This project is on hold," Murthy said.
NCC currently has an order book of Rs 12,200 crore. The infrastructure major, which was focusing more on road projects, is now looking at other opportunities.
"Earlier, we used have about 25% of our order book from roads. Now, it is down to 8%. There are other opportunities in power, metals, oil & gas and mining. The focus now is on having a diversified portfolio," he explained.
The company is also pinning hopes on the freight corridor plans announced by the government for finalising its foray into railways.
Tuesday, July 14, 2009
Maytas effect: More idle projects face axe
After rejecting Maytas Infra from the Metro Rail project, the state government has decided to crack the whip on other companies which have been delaying major infrastructure projects.
The much-hyped 100-storied tower by Anil Ambani’s Reliance group, the Special Economic Zone and oil refinery at Kakinada, which is jointly promoted by the GMR and Kakinada Sea Ports Limited, Machilipatnam port and IT SEZs on the city outskirts are under scanner.
Work on irrigation projects such as Pulichintala and Polavaram besides the Outer Ring Road have also been going on at snail’s pace, thanks to the indifferent attitude of contractors.
“It is high time the government sends out a clear message to them to execute the projects or face the axe,” said a senior official.
Sources said the KSEZ promoters have raised new demands, including a captive port and a promise that no other refinery shall be allowed in the coast. They are ascribing the delay to problems in land acquisition though the state has already alloted 5,000 acres.
Reliance group has also been inactive on the tower project taken up in October 2007 though it should be completed in four years.
Similarly, Raheja, Indu and Bramhani groups were alloted 250 acres each to build IT SEZs, but there is little progress. The government could cancel the projects on grounds of delay.
The much-hyped 100-storied tower by Anil Ambani’s Reliance group, the Special Economic Zone and oil refinery at Kakinada, which is jointly promoted by the GMR and Kakinada Sea Ports Limited, Machilipatnam port and IT SEZs on the city outskirts are under scanner.
Work on irrigation projects such as Pulichintala and Polavaram besides the Outer Ring Road have also been going on at snail’s pace, thanks to the indifferent attitude of contractors.
“It is high time the government sends out a clear message to them to execute the projects or face the axe,” said a senior official.
Sources said the KSEZ promoters have raised new demands, including a captive port and a promise that no other refinery shall be allowed in the coast. They are ascribing the delay to problems in land acquisition though the state has already alloted 5,000 acres.
Reliance group has also been inactive on the tower project taken up in October 2007 though it should be completed in four years.
Similarly, Raheja, Indu and Bramhani groups were alloted 250 acres each to build IT SEZs, but there is little progress. The government could cancel the projects on grounds of delay.
Saturday, June 27, 2009
Building Penalisation Scheme mela
The GHMC, Secunderabad circle is conducting the BPS mela at Hari Hara Kala Bhavan from June 23 to 25.
The building permissions will be issued on the spot for applications which come enclosed with prescribed documents including structural safety certificates and payment of penalisation charges.
On June 23 and 24, authorities will vet the applications of Ward nos. 6, 10, 11 and 12 covering Padma Rao Nagar, Walker Town, Mekalamandi, Bholakpur, Gandhi Nagar, Kavadgiuda and Bansilalpet, East and West Marredpally, Tukaram Gate, Addagutta, Chilkalguda, Mylargadda, Srinivasa Nagar, Uppar Basthi, Madhura Nagar, Mahmoodguda, Parsigutta, Ashok Nagar, Sanjeevapuram, Lalapet, Indira Nagar, Laxmi Nagar, Shanthi Nagar, Vijaypuri, South Lallaguda, Nagarjuna Nagar, Keemthi Colony, Tarnaka, Gokul Nagar, Sai Nagar, Vinobha Nagar, Mettuguda, Keshava Nagar, Seethaphalmandi, Namalagundu, Boudha Nagar, Warasiguda, Ravindra Nagar, Manikeshwari Nagar.
On June 25, it will be Ward nos. 1, 2, 3, 4, 5, 7, 8, 9 covering S.P.Road, Clock Tower, S.D.Road, Alexander Road, Raja Mudaliar Street, Kalasiguda, Mahankali Street, Dhan Bazar, M.G.Road, P.G.Road, Prakasham Nagar, Pattigadda, Indian Airlines Colony, Begumpet, Brahmanwadi, Chikoti Garden, Mayur Marg, Allamthota Bavi, Dwaraka Dass Colony, Customs Colony, Bhagwanthapuram, Motilal Nagar, Shyamlal Building, Subash Road, Pan Bazar, D.V.Colony, Nallaguda, Ramgopalpet, Mcloadguda, Patny, Avulamandi, General Bazar, Tobacco Bazar, Old Bhoiguda, Subash Road, Distillery Road, Mahankali Street, Pan Bazar, Hill Street, Jeera, Hyder Basthi, Boats Club, Maruthi Veedhi, Bandimet, Moosakhan Bazar, Nala Bazar, Pot Market, Ashok Nagar, Takkar Basthi, Ghasmandi Road, Audaiah Nagar, Kummarguda, Second Bazar and Regimental Bazar.
The building permissions will be issued on the spot for applications which come enclosed with prescribed documents including structural safety certificates and payment of penalisation charges.
On June 23 and 24, authorities will vet the applications of Ward nos. 6, 10, 11 and 12 covering Padma Rao Nagar, Walker Town, Mekalamandi, Bholakpur, Gandhi Nagar, Kavadgiuda and Bansilalpet, East and West Marredpally, Tukaram Gate, Addagutta, Chilkalguda, Mylargadda, Srinivasa Nagar, Uppar Basthi, Madhura Nagar, Mahmoodguda, Parsigutta, Ashok Nagar, Sanjeevapuram, Lalapet, Indira Nagar, Laxmi Nagar, Shanthi Nagar, Vijaypuri, South Lallaguda, Nagarjuna Nagar, Keemthi Colony, Tarnaka, Gokul Nagar, Sai Nagar, Vinobha Nagar, Mettuguda, Keshava Nagar, Seethaphalmandi, Namalagundu, Boudha Nagar, Warasiguda, Ravindra Nagar, Manikeshwari Nagar.
On June 25, it will be Ward nos. 1, 2, 3, 4, 5, 7, 8, 9 covering S.P.Road, Clock Tower, S.D.Road, Alexander Road, Raja Mudaliar Street, Kalasiguda, Mahankali Street, Dhan Bazar, M.G.Road, P.G.Road, Prakasham Nagar, Pattigadda, Indian Airlines Colony, Begumpet, Brahmanwadi, Chikoti Garden, Mayur Marg, Allamthota Bavi, Dwaraka Dass Colony, Customs Colony, Bhagwanthapuram, Motilal Nagar, Shyamlal Building, Subash Road, Pan Bazar, D.V.Colony, Nallaguda, Ramgopalpet, Mcloadguda, Patny, Avulamandi, General Bazar, Tobacco Bazar, Old Bhoiguda, Subash Road, Distillery Road, Mahankali Street, Pan Bazar, Hill Street, Jeera, Hyder Basthi, Boats Club, Maruthi Veedhi, Bandimet, Moosakhan Bazar, Nala Bazar, Pot Market, Ashok Nagar, Takkar Basthi, Ghasmandi Road, Audaiah Nagar, Kummarguda, Second Bazar and Regimental Bazar.
Friday, June 26, 2009
Residential spaces looking up again
There is finally good news for the realty market. After months of being stagnant, the real estate market across the country is showing some signs of revival. Demand in the residential segment is picking up and is growing by 10 to 20 per cent in the current financial year as compared to the last.
Thanks to depreciating property prices combined with the recent cuts in home loan interest rates along with a stable government at the Centre and their economic policies in place, a much-needed impetus has been given to the real estate sector. Going by industry sources, sales have picked up in almost all metro cities including Delhi-NCR, Mum-bai, Bengaluru, Chennai and Hyderabad. The last two months have seen the market suddenly turn positive with investors and especially end-users flocking in with their demands. Informs Manu Garg of Landcraft Developers, “There is a definite sign of revival in the realty arena. We have already seen some movement in the real estate market over the last two to three months. The good thing is that a high percentage of end-users are going in to buy, which is a healthy pre-indication of a mature and transparent market. Since speculative activities have been wiped out almost completely, things will change for the better with the government’s favourable economic policies.”
Adds R.R. Nair, director and CEO, LIC housing finance, “There has been a 40 per cent increase in the number of applications for home loans in the last two months. Since the market is picking up, we aim to sanction about Rs 12,000-13,000 crore this financial year.”
Not only is the property market coming out of the shadows, but the icing on the cake has been Union finance minister Pranab Mukherjee's latest initiative of exhorting public sector banks to further cut interest rates on home, retail loans and industrial lending to give the economy a boost. Says Rohtas Goel, CMD, Omaxe Ltd, “The move by the FM is a welcome step and is the need of the hour. I am hopeful that this will extend the affordability of loans to the masses. We expect the move to help in reviving the real estate sector — bringing relief to both the end-user and the developer. As the real estate sector has a multiplier affect for many associated industries and employment at large, the initiative will act as a boon to the sector and the country’s economy in turn.”
Avers Bhim Yadav, CEO of Falcon Realty Services, “Sentiment will improve significantly giving confidence to the industry, investors, buyers and the public at large. Further reduction in interest rates by public sector banks in order to boost credit demand will now bring down EMIs and this will further help buyers to go for affordable housing.”
There is no doubt that the dip in property prices has opened up avenues for the common man. Says Sunil Pandey, a realty expert from Delhi, “Those who always wanted to buy a home but did not dare venture into the volatile realty market are now buying a property of their choice.” And at rates that could well suit their pockets. On the other hand the developer and builder community is fast gauging the type of demand that exists and from the trends it seems clear that affordable housing will be the flavour of the months to come.
Sums up Sunil Jindal of the SVP Group, “There are many things that developers have to learn from the past year and implement those results in the coming year. A fall in sales does not mean that demand does not exist. It only means that somewhere down the line developers went gone wrong in tapping the right demand and supply according to it. Price cuts are one of the tools that developers used in 2008 and these will be used in 2009 as well. When we say affordable housing we have to define a price band. According to me the right price band would be Rs 25 lakh to Rs 35 lakh. Those developers who target this range will come out in winning colours. But to say that only price cuts will revive the industry would be asking for too much.”
All in all the current situation at ground zero seems to be favouring consumers and this period can be used by people who have wanted to buy property but just could not afford to, given the set of circumstances earlier.
Wednesday, June 17, 2009
No sign of their dream homes yet
The hydra-effect of the recession is now having repercussions on home-buyers. Investing in real estate — an established ‘safe’ way to sink your life savings — has turned into a luck of the draw with several realtors not living up to their promises. Lakhs of rupees paid as advances are now stuck with construction companies who over-leveraged themselves promising customers “international” residences complete with club houses, pools, community centres and the works.
As many as a thousand buyers at Hill County, flagship project of Maytas Properties Limited, which was part of erstwhile Satyam Group of companies, are the worst victims as the developer failed to complete the project even after receiving complete payments. Most customers trusted the Satyam brand and some have even paid up to Rs 1 crore as the full amount for villas to own their dream home.
Poorna Chandra Rao Pabbati, one of the buyers complains, “Instead of commencing the work, after the Satyam scandal broke, the developers are giving vague and evasive response to the buyers. the government must look into the episode and do justice to all the buyers.”
Customers of other major companies such as Aliens Group and Suchirindia too are getting jittery, though the builders claim that projects are being completed as per schedule. Aliens Group managing director Hari Challa says, “We assure that we will complete Aliens space station-1 by September, 2011, which was clearly mentioned in the agreement copy. Work has been going on in full swing as we have already sold 75 per cent of flats. A few recession-hit clients even asked us to return their money, and we’ve done that promptly.”
But it’s not just the big timers who have been affected. Several small time builders in smaller townships who attracted customers with their colourful brochures and tall promises are absconding now. “We paid Rs 5 lakh to the builder of Sai Nilayam. He is evading all the buyers and has switched off his mobile phone,” says an irate buyer Devata Srinivasa Rao.
Buyers of government owned Rajiv Swagruha Corporation too are up in arms against the officials as they have not only failed to deliver the houses but are also unable to return deposits, though the project was launched in March 2007. “I paid Rs 2.42 lakh as first installment for a house under the Swagruha scheme. They cancelled the allotment and did not return my money,” says Mayura Rathi, an investor.
Good news though is that consumers who feel shortchanged can do more than just crib. There are several statutes in place to protect the interests of realty investors. For instance, if the construction is postponed due to bad weather or lack of permissions, customers are eligible for receiving a rent of Rs 3 to 5 per sft. AP High Court, senior advocate N. Ramachander Rao says, “Customers can approach the consumer forum if the builder does not respond properly. They can demand a refund of the advance paid with an interest from the builder if the project is delayed.”
It’s advisable to know the compensation clauses and rules to avoid falling into builders’ trap, he adds.
Courtesy:Deccan Chronicle
Tuesday, June 9, 2009
Spacing it out with three ‘R’s
The erstwhile Central Business Districts of Abids-Koti as well as industrial areas of Sanatnagar, Azamabad, Kattedan in Chandrayanagutta and parts of old city are to become Regeneration, Renewal and Redevelopment Zones (RRRZs) in the new Master Plan (MP).
The plan in its final stages of preparation for the ex-MCH region focuses on flexible land use policy, infrastructure development along with RRRZs to initiate special development housing projects to cater to the rise in residents to 2.58 million. The total population is estimated to reach 6.13 million by 2031.
These special projects are to be undertaken with amalgamation of plots involving various departments and citizens. The MP has mooted rebates in building fee and charges ranging from 25 per cent to 50 per cent depending on the area of the plot, to the developers or owners.
Added incentive
Further, a moratorium in payment of property tax from two to five years too has been mooted as an added incentive to encourage group housing. Alternatively, it has also suggested a special discount in fee and charges from 25 per cent to 50 per cent to push road-widening depending to the extent of land lost.
RRRZs are to be divided into three categories to propel redevelopment through partnerships. Abids, its environs and parts of the old city constitute the first and second categories where area proposed for development should be between 9 -12 metres minimum road widths with plot sizes between 1,000 sq.mts and 2,000 sq.mts. Existing residents will be rehabilitated at the same site with minimum equivalent built-up area.
Prospective builders or owners will have to furnish a Rs. 100 stamp paper along with application for building permission.
These new structures will have one extra floor more than permitted under the common building rules subject to fire safety requirements.
In the third category of parts of the old city, plot sizes for redevelopment should have a minimum of 4,000 sq.mts with abutting road widths of 18 mts.
Open spaces within should be at least 36 sq.mts with six metre width for buildings with three floors high (10 metres), 64 sq.mts with minimum eight metre width for four floors (12 mts) and 100 sq.mts with 10 mts width for five floors (15 mts).
Parking is to be allowed in stilt floor and each of the group housing mooted should be separated by six metres. While no setbacks are required for interior clusters since open spaces are in built, those in the end adjoining roads should have a 1.5 mts setback. Land use conversion charges will also not be charged.
Public utilities
Five per cent of the site should be handed over free to GHMC for shifting public utilities.
In order to encourage social housing mix in the re-development housing programme, no fees or charges are proposed to be collected for developing Economically Weaker Sections (EWS) or Low Income Group (LIG) housing units in a separate block or floor. Prospective developers have to provide 10 per cent of total built up area for EWS/LIG with built up areas of 25 sq.mts and 40 sq.mts units, respectively, in equal measure.
In return, they will also be given an extra floor subject to mandated fire safety norms. Currently, data is being gathered from various departments to be integrated into the plan.
Monday, June 8, 2009
Maytas ‘Hill County’ plan falls flat
Maytas Hill County, the prestigious project of Maytas Properties Limited, has failed to deliver over 300 bungalows and villas and 840 flats after collecting Rs 650 crore from its customers. The Hill County Home Owners’ Welfare Association, formed after the Satyam scam broke in January 2009, wants to present their case to the Company Law Board (CLB). Their demands are: directives from the CLB to the promoters for time-bound delivery of the dwelling units, compensation for the loss due to delays and punitive action in case of further delay.
The association has written to the chairman of the CLB, the Chief Minister, Dr Y.S. Rajasekhar Reddy, the chief secretary and senior officials alleging that the promoters of MPL have diverted funds. “The association secretary, Mr Anil Kumar Katakam, said many buyers had paid either the entire amount or sums ranging between Rs 40 lakh and Rs 5 crore. We now want to be impleaded as an affected party in the case pending before the CLB,” he said after a meeting on Sunday.
“The promoters have taken additional money from home owners whose units are almost complete, offering to repay such funds in around six months’ time. Some owners are trying to complete construction on their own and move in, despite inadequate infrastructure support,” said Mr Anil Kumar. The association president, Mr Satish Tirupati, said they were promised handing over of completed units by March 2008.
Only half-a-dozen independent bungalows have been completed while the apartments have only the RCC shell in some towers. Some do not have even the structure.
The promoters have virtually closed down operations, sacked most of their employees, disposed of assets and are currently lying low.
courtesy:Deccan chronicle
Tuesday, June 2, 2009
To day Events In Hyderabad
Religion
Sri Ganapathi Sachchidananda Avadhoota Datta Peetha Trust: 67th birthday celebrations of Sri Ganapathi Sachidananda, SGS Ashrama, Air Force Academy Road, Dundigal, 10 a.m.
General
Alcoholics Anonymous: Meeting, St. Francis School, Secunderabad, 7 p.m.
KAB Educational Consultants: KAB Education Fair-2009, Institution of Engineers, Khairatabad, 10 a.m.
Jana Chaitanya Vedika: Discussion on fish medicine, Vedika premises, Saifabad, 11 a.m.
CULTURE:
Shata Rupa-2009: ‘Mimicry, magic and mime saptaaham’, Ravindra Bharathi, 6.30 p.m.
ICONART Gallery: An exhibition of paintings ‘The Buddha Speaks’, gallery premises, Road No-12, Banjara Hills, 11 a.m.
Sri Kalanikethan: ‘Jagruthi-Sri Kalanikethan’ Cultural Awards ceremony, Ravindra Bharathi, 6 p.m.
Sri Ganapathi Sachchidananda Avadhoota Datta Peetha Trust: 67th birthday celebrations of Sri Ganapathi Sachidananda, SGS Ashrama, Air Force Academy Road, Dundigal, 10 a.m.
General
Alcoholics Anonymous: Meeting, St. Francis School, Secunderabad, 7 p.m.
KAB Educational Consultants: KAB Education Fair-2009, Institution of Engineers, Khairatabad, 10 a.m.
Jana Chaitanya Vedika: Discussion on fish medicine, Vedika premises, Saifabad, 11 a.m.
CULTURE:
Shata Rupa-2009: ‘Mimicry, magic and mime saptaaham’, Ravindra Bharathi, 6.30 p.m.
ICONART Gallery: An exhibition of paintings ‘The Buddha Speaks’, gallery premises, Road No-12, Banjara Hills, 11 a.m.
Sri Kalanikethan: ‘Jagruthi-Sri Kalanikethan’ Cultural Awards ceremony, Ravindra Bharathi, 6 p.m.
Realty funds looking at low-cost projects
The recent launch of Rs5-15 lakh homes by realtors across the nation has attracted not only homebuyers. Property funds that have stayed away from the realty sector since the global economic downturn deepened in September are looking at a comeback, primarily to back low-cost housing projects. “A year back, property funds were eyeing projects like iconic towers and exclusive homes riding on the boom. Those days are over,” said Naresh Nadkarni, chief investment officer, HDFC Realty Fund. “Funds are now only focusing on low- and middle-income housing because that’s where the movement is.” The HDFC fund is at an advanced stage of sealing a Rs200 crore investment in a middle-income project by Provident Housing and Infrastructure Ltd, a subsidiary of Puravankara Projects Ltd, two analysts familiar with the project said. They didn’t want to be identified. Nadkarni declined to give details, citing company policy.
The project in Bangalore will have at least 4,000 homes with a price tag of Rs10-20 lakh each. Puravankara recently launched a similar project in Chennai. Developers such as Puravankara and Tata Housing Development Co. Ltd have ventured into low-cost housing in the past two months, after a spate of affordable projects in the Rs30-60 lakh range launched by several developers failed to pick up.In 2008, real estate funds made 77 investments worth a combined $8.4 billion (Rs39,984 crore today) in property companies and special purpose vehicles, according to Venture Intelligence, which tracks venture capital and private equity (PE) deals in India. About 80% of these investments were for special economic zones, or mall or township projects. Of the total investments in 2008, nearly 70%, or $5.8 billion, was made in the first half of the year. Investment projections for 2009 are not available yet. This year, the focus for realty funds has moved from providing aid to developers in distress to helping construct large, cheaper projects that will sell quickly.
The Ajay Piramal-promoted Indiareit Fund Advisors Pvt. Ltd has invested Rs250 crore in four such projects—three in Mumbai and one in Hyderabad. Of these, one is in the Rs5 lakh per house category and the rest in the mid-segment range. Ramesh Jogani, managing director and chief executive officer of Indiareit, said: “This year, we will look at a mix of projects including both these segments. We want to finance projects that are just beginning construction.” The fund, which is planning a round of domestic fund-raising of Rs500 crore in 2009, last year exited a luxury project in Alibaug, a seaside destination near Mumbai. It had earlier committed Rs250 crore to the project, which was to be developed jointly with Samira Habitats. Realty funds are also trying to gauge the risk factors attached to such low-cost projects. Indiareit and Red Fort Capital Fund Advisors Pvt. Ltd say that though investing in the low- and mid-cost segments is a safe bet, they are studying the project models to ensure they have the right sourcing of material, location and price. With thin profit margins and tight costs, it is imperative the projects are completed on schedule. “Like ours, many funds are working out the actual details of a project with developers, and even restructuring aspects to make a more viable business model,” said Nadkarni. Possibilities of delays in getting approvals, construction costs rising, and a strict price point make such projects riskier than regular ventures, he said. Nayan Bheda, managing director of Neptune Developers Pvt. Ltd, which has launched a 125 acre low-cost project near Mumbai, funded by Indiareit, and has three more planned in Chennai, Nagpur and Pune, says only such projects can assure sales. For instance,
Nepture has sold 2,000 of the 2,100 units in the first phase of its Mumbai project in just 2 months. “PE funds demand higher IRR (internal rate of return) of over 24% in such projects as the appreciation of profit is not high. But we have been lucky with Indiareit as an investor,” Bheda said.
The project in Bangalore will have at least 4,000 homes with a price tag of Rs10-20 lakh each. Puravankara recently launched a similar project in Chennai. Developers such as Puravankara and Tata Housing Development Co. Ltd have ventured into low-cost housing in the past two months, after a spate of affordable projects in the Rs30-60 lakh range launched by several developers failed to pick up.In 2008, real estate funds made 77 investments worth a combined $8.4 billion (Rs39,984 crore today) in property companies and special purpose vehicles, according to Venture Intelligence, which tracks venture capital and private equity (PE) deals in India. About 80% of these investments were for special economic zones, or mall or township projects. Of the total investments in 2008, nearly 70%, or $5.8 billion, was made in the first half of the year. Investment projections for 2009 are not available yet. This year, the focus for realty funds has moved from providing aid to developers in distress to helping construct large, cheaper projects that will sell quickly.
The Ajay Piramal-promoted Indiareit Fund Advisors Pvt. Ltd has invested Rs250 crore in four such projects—three in Mumbai and one in Hyderabad. Of these, one is in the Rs5 lakh per house category and the rest in the mid-segment range. Ramesh Jogani, managing director and chief executive officer of Indiareit, said: “This year, we will look at a mix of projects including both these segments. We want to finance projects that are just beginning construction.” The fund, which is planning a round of domestic fund-raising of Rs500 crore in 2009, last year exited a luxury project in Alibaug, a seaside destination near Mumbai. It had earlier committed Rs250 crore to the project, which was to be developed jointly with Samira Habitats. Realty funds are also trying to gauge the risk factors attached to such low-cost projects. Indiareit and Red Fort Capital Fund Advisors Pvt. Ltd say that though investing in the low- and mid-cost segments is a safe bet, they are studying the project models to ensure they have the right sourcing of material, location and price. With thin profit margins and tight costs, it is imperative the projects are completed on schedule. “Like ours, many funds are working out the actual details of a project with developers, and even restructuring aspects to make a more viable business model,” said Nadkarni. Possibilities of delays in getting approvals, construction costs rising, and a strict price point make such projects riskier than regular ventures, he said. Nayan Bheda, managing director of Neptune Developers Pvt. Ltd, which has launched a 125 acre low-cost project near Mumbai, funded by Indiareit, and has three more planned in Chennai, Nagpur and Pune, says only such projects can assure sales. For instance,
Nepture has sold 2,000 of the 2,100 units in the first phase of its Mumbai project in just 2 months. “PE funds demand higher IRR (internal rate of return) of over 24% in such projects as the appreciation of profit is not high. But we have been lucky with Indiareit as an investor,” Bheda said.
Monday, June 1, 2009
Realty funds looking at low-cost projects
The recent launch of Rs5-15 lakh homes by realtors across the nation has attracted not only homebuyers. Property funds that have stayed away from the realty sector since the global economic downturn deepened in September are looking at a comeback, primarily to back low-cost housing projects. “A year back, property funds were eyeing projects like iconic towers and exclusive homes riding on the boom. Those days are over,” said Naresh Nadkarni, chief investment officer, HDFC Realty Fund. “Funds are now only focusing on low- and middle-income housing because that’s where the movement is.” The HDFC fund is at an advanced stage of sealing a Rs200 crore investment in a middle-income project by Provident Housing and Infrastructure Ltd, a subsidiary of Puravankara Projects Ltd, two analysts familiar with the project said. They didn’t want to be identified. Nadkarni declined to give details, citing company policy.
The project in Bangalore will have at least 4,000 homes with a price tag of Rs10-20 lakh each. Puravankara recently launched a similar project in Chennai. Developers such as Puravankara and Tata Housing Development Co. Ltd have ventured into low-cost housing in the past two months, after a spate of affordable projects in the Rs30-60 lakh range launched by several developers failed to pick up.In 2008, real estate funds made 77 investments worth a combined $8.4 billion (Rs39,984 crore today) in property companies and special purpose vehicles, according to Venture Intelligence, which tracks venture capital and private equity (PE) deals in India. About 80% of these investments were for special economic zones, or mall or township projects. Of the total investments in 2008, nearly 70%, or $5.8 billion, was made in the first half of the year. Investment projections for 2009 are not available yet. This year, the focus for realty funds has moved from providing aid to developers in distress to helping construct large, cheaper projects that will sell quickly.
The Ajay Piramal-promoted Indiareit Fund Advisors Pvt. Ltd has invested Rs250 crore in four such projects—three in Mumbai and one in Hyderabad. Of these, one is in the Rs5 lakh per house category and the rest in the mid-segment range. Ramesh Jogani, managing director and chief executive officer of Indiareit, said: “This year, we will look at a mix of projects including both these segments. We want to finance projects that are just beginning construction.” The fund, which is planning a round of domestic fund-raising of Rs500 crore in 2009, last year exited a luxury project in Alibaug, a seaside destination near Mumbai. It had earlier committed Rs250 crore to the project, which was to be developed jointly with Samira Habitats. Realty funds are also trying to gauge the risk factors attached to such low-cost projects. Indiareit and Red Fort Capital Fund Advisors Pvt. Ltd say that though investing in the low- and mid-cost segments is a safe bet, they are studying the project models to ensure they have the right sourcing of material, location and price. With thin profit margins and tight costs, it is imperative the projects are completed on schedule. “Like ours, many funds are working out the actual details of a project with developers, and even restructuring aspects to make a more viable business model,” said Nadkarni. Possibilities of delays in getting approvals, construction costs rising, and a strict price point make such projects riskier than regular ventures, he said. Nayan Bheda, managing director of Neptune Developers Pvt. Ltd, which has launched a 125 acre low-cost project near Mumbai, funded by Indiareit, and has three more planned in Chennai, Nagpur and Pune, says only such projects can assure sales. For instance,
Nepture has sold 2,000 of the 2,100 units in the first phase of its Mumbai project in just 2 months. “PE funds demand higher IRR (internal rate of return) of over 24% in such projects as the appreciation of profit is not high. But we have been lucky with Indiareit as an investor,” Bheda said.
courtesy:www.maaproperties.com
The project in Bangalore will have at least 4,000 homes with a price tag of Rs10-20 lakh each. Puravankara recently launched a similar project in Chennai. Developers such as Puravankara and Tata Housing Development Co. Ltd have ventured into low-cost housing in the past two months, after a spate of affordable projects in the Rs30-60 lakh range launched by several developers failed to pick up.In 2008, real estate funds made 77 investments worth a combined $8.4 billion (Rs39,984 crore today) in property companies and special purpose vehicles, according to Venture Intelligence, which tracks venture capital and private equity (PE) deals in India. About 80% of these investments were for special economic zones, or mall or township projects. Of the total investments in 2008, nearly 70%, or $5.8 billion, was made in the first half of the year. Investment projections for 2009 are not available yet. This year, the focus for realty funds has moved from providing aid to developers in distress to helping construct large, cheaper projects that will sell quickly.
The Ajay Piramal-promoted Indiareit Fund Advisors Pvt. Ltd has invested Rs250 crore in four such projects—three in Mumbai and one in Hyderabad. Of these, one is in the Rs5 lakh per house category and the rest in the mid-segment range. Ramesh Jogani, managing director and chief executive officer of Indiareit, said: “This year, we will look at a mix of projects including both these segments. We want to finance projects that are just beginning construction.” The fund, which is planning a round of domestic fund-raising of Rs500 crore in 2009, last year exited a luxury project in Alibaug, a seaside destination near Mumbai. It had earlier committed Rs250 crore to the project, which was to be developed jointly with Samira Habitats. Realty funds are also trying to gauge the risk factors attached to such low-cost projects. Indiareit and Red Fort Capital Fund Advisors Pvt. Ltd say that though investing in the low- and mid-cost segments is a safe bet, they are studying the project models to ensure they have the right sourcing of material, location and price. With thin profit margins and tight costs, it is imperative the projects are completed on schedule. “Like ours, many funds are working out the actual details of a project with developers, and even restructuring aspects to make a more viable business model,” said Nadkarni. Possibilities of delays in getting approvals, construction costs rising, and a strict price point make such projects riskier than regular ventures, he said. Nayan Bheda, managing director of Neptune Developers Pvt. Ltd, which has launched a 125 acre low-cost project near Mumbai, funded by Indiareit, and has three more planned in Chennai, Nagpur and Pune, says only such projects can assure sales. For instance,
Nepture has sold 2,000 of the 2,100 units in the first phase of its Mumbai project in just 2 months. “PE funds demand higher IRR (internal rate of return) of over 24% in such projects as the appreciation of profit is not high. But we have been lucky with Indiareit as an investor,” Bheda said.
courtesy:www.maaproperties.com
Realty funds looking at low-cost projects
The recent launch of Rs5-15 lakh homes by realtors across the nation has attracted not only homebuyers. Property funds that have stayed away from the realty sector since the global economic downturn deepened in September are looking at a comeback, primarily to back low-cost housing projects. “A year back, property funds were eyeing projects like iconic towers and exclusive homes riding on the boom. Those days are over,” said Naresh Nadkarni, chief investment officer, HDFC Realty Fund. “Funds are now only focusing on low- and middle-income housing because that’s where the movement is.” The HDFC fund is at an advanced stage of sealing a Rs200 crore investment in a middle-income project by Provident Housing and Infrastructure Ltd, a subsidiary of Puravankara Projects Ltd, two analysts familiar with the project said. They didn’t want to be identified. Nadkarni declined to give details, citing company policy.
The project in Bangalore will have at least 4,000 homes with a price tag of Rs10-20 lakh each. Puravankara recently launched a similar project in Chennai. Developers such as Puravankara and Tata Housing Development Co. Ltd have ventured into low-cost housing in the past two months, after a spate of affordable projects in the Rs30-60 lakh range launched by several developers failed to pick up.In 2008, real estate funds made 77 investments worth a combined $8.4 billion (Rs39,984 crore today) in property companies and special purpose vehicles, according to Venture Intelligence, which tracks venture capital and private equity (PE) deals in India. About 80% of these investments were for special economic zones, or mall or township projects. Of the total investments in 2008, nearly 70%, or $5.8 billion, was made in the first half of the year. Investment projections for 2009 are not available yet. This year, the focus for realty funds has moved from providing aid to developers in distress to helping construct large, cheaper projects that will sell quickly.
The Ajay Piramal-promoted Indiareit Fund Advisors Pvt. Ltd has invested Rs250 crore in four such projects—three in Mumbai and one in Hyderabad. Of these, one is in the Rs5 lakh per house category and the rest in the mid-segment range. Ramesh Jogani, managing director and chief executive officer of Indiareit, said: “This year, we will look at a mix of projects including both these segments. We want to finance projects that are just beginning construction.” The fund, which is planning a round of domestic fund-raising of Rs500 crore in 2009, last year exited a luxury project in Alibaug, a seaside destination near Mumbai. It had earlier committed Rs250 crore to the project, which was to be developed jointly with Samira Habitats. Realty funds are also trying to gauge the risk factors attached to such low-cost projects. Indiareit and Red Fort Capital Fund Advisors Pvt. Ltd say that though investing in the low- and mid-cost segments is a safe bet, they are studying the project models to ensure they have the right sourcing of material, location and price. With thin profit margins and tight costs, it is imperative the projects are completed on schedule. “Like ours, many funds are working out the actual details of a project with developers, and even restructuring aspects to make a more viable business model,” said Nadkarni. Possibilities of delays in getting approvals, construction costs rising, and a strict price point make such projects riskier than regular ventures, he said. Nayan Bheda, managing director of Neptune Developers Pvt. Ltd, which has launched a 125 acre low-cost project near Mumbai, funded by Indiareit, and has three more planned in Chennai, Nagpur and Pune, says only such projects can assure sales. For instance,
Nepture has sold 2,000 of the 2,100 units in the first phase of its Mumbai project in just 2 months. “PE funds demand higher IRR (internal rate of return) of over 24% in such projects as the appreciation of profit is not high. But we have been lucky with Indiareit as an investor,” Bheda said.
courtesy:www.maaproperties.com
The project in Bangalore will have at least 4,000 homes with a price tag of Rs10-20 lakh each. Puravankara recently launched a similar project in Chennai. Developers such as Puravankara and Tata Housing Development Co. Ltd have ventured into low-cost housing in the past two months, after a spate of affordable projects in the Rs30-60 lakh range launched by several developers failed to pick up.In 2008, real estate funds made 77 investments worth a combined $8.4 billion (Rs39,984 crore today) in property companies and special purpose vehicles, according to Venture Intelligence, which tracks venture capital and private equity (PE) deals in India. About 80% of these investments were for special economic zones, or mall or township projects. Of the total investments in 2008, nearly 70%, or $5.8 billion, was made in the first half of the year. Investment projections for 2009 are not available yet. This year, the focus for realty funds has moved from providing aid to developers in distress to helping construct large, cheaper projects that will sell quickly.
The Ajay Piramal-promoted Indiareit Fund Advisors Pvt. Ltd has invested Rs250 crore in four such projects—three in Mumbai and one in Hyderabad. Of these, one is in the Rs5 lakh per house category and the rest in the mid-segment range. Ramesh Jogani, managing director and chief executive officer of Indiareit, said: “This year, we will look at a mix of projects including both these segments. We want to finance projects that are just beginning construction.” The fund, which is planning a round of domestic fund-raising of Rs500 crore in 2009, last year exited a luxury project in Alibaug, a seaside destination near Mumbai. It had earlier committed Rs250 crore to the project, which was to be developed jointly with Samira Habitats. Realty funds are also trying to gauge the risk factors attached to such low-cost projects. Indiareit and Red Fort Capital Fund Advisors Pvt. Ltd say that though investing in the low- and mid-cost segments is a safe bet, they are studying the project models to ensure they have the right sourcing of material, location and price. With thin profit margins and tight costs, it is imperative the projects are completed on schedule. “Like ours, many funds are working out the actual details of a project with developers, and even restructuring aspects to make a more viable business model,” said Nadkarni. Possibilities of delays in getting approvals, construction costs rising, and a strict price point make such projects riskier than regular ventures, he said. Nayan Bheda, managing director of Neptune Developers Pvt. Ltd, which has launched a 125 acre low-cost project near Mumbai, funded by Indiareit, and has three more planned in Chennai, Nagpur and Pune, says only such projects can assure sales. For instance,
Nepture has sold 2,000 of the 2,100 units in the first phase of its Mumbai project in just 2 months. “PE funds demand higher IRR (internal rate of return) of over 24% in such projects as the appreciation of profit is not high. But we have been lucky with Indiareit as an investor,” Bheda said.
courtesy:www.maaproperties.com
Saturday, May 30, 2009
Light at the end of the tunnel
Real estate developers are optimistic of the industry looking up now with a stable government in place
Real estate will recover after the elections. And that happened to be the catchphrase for any discussion on property matters for the last couple of months. Developers buttonholed those who lent a ear on how projects were kept in abeyance. Most buyers did not mince words to state that buying options were on hold till the heat and dust settles down.
The government is in place and elections have delivered the verdict on Telangana that had been needling the real estate investors and developers for quite some time now. Whenever the proponents of separate Statehood showed their electoral strength, the developers with big money and big projects turned nervous.
This was proved even in the local body elections with the real estate going a bit cold when results went in favour of the T-factor.
Now that the T-factor hardly clicked, there is a sense of reprieve in the construction industry. As one of them pointed out, “at least for next five years the issue might not come to haunt”. The glimmer of hope that all will fall in place for the real estate post polls and the future seems brighter.
Buyers’ market
The industry feels that prices ‘went for a correction’ as they prefer to call. There will be no further downward cut.
“As of now, it is buyers’ market and the right time to pick up property. Once the activity picks up, there will be incremental growth in property prices,” says one.
The correction has seen the apartment prices going down by 15 to 30 per cent in most places, while sales have dwindled drastically in some other places.
Now, the industry is looking up towards the Union government for steps leading to a cut in home loan interest rates to infuse a fresh lease of life for the real estate.
At the same time, certain representations seeking rationalisation and slashing of developmental and other charges have been pending with the State government and some concessions to this effect are being anticipated.
As builders concede, the T-factor did exert certain psychological pressure on investors, there is a sense of relief in the industry. The boom-time is not expected to return, but the hope is that industry will recover and stabilise very soon.
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