Godrej Industries Ltd chairman Adi Godrej said on Tuesday the group’s real estate unit, Godrej Properties, will file papers for an initial public offer with the markets regulator in “a few days”. “We will file the prospectus with Sebi (Securities and exchange Board of India) in a few days,” Godrej said.
“We will be diluting about 10% stake.” The company is currently developing about 20 million sq ft in Mumbai, Pune, Kolkata, Bangalore and Hyderabad. Indian real estate firms, hit by surging land costs and curbs on bank funding, have rushed to the capital market as they expand to cash in on an urban real estate boom.
In 2007, real estate firms mopped up a third of all funds raised through public offers in India. Twelve real estate firms raised Rs 15,185 crore, including the country largest real estate firm DLF, which raised $2.25 billion
Courtesy: Wednesday T.O.I 27 February
Thursday, February 28, 2008
OMAXE TO SET UP THEME TOWNSHIP
Delhi-based real estate major Omaxe will develop a theme township on 393 acre at Naya Raipur — the capital city of Chattisgarh. The Omaxe Golf Theme Township will be developed at a cost of Rs 1,800 crore.
Omaxe is one of the India’s largest real estate and construction firms with operations in 31 cities. It has developed residential and commercial real estate projects ranging from integrated toxnships, group housing, office/commercial spaces, shopping malls, hotels, IT and bio-tech parks to special economic zones.
It has already developed nearly 5.59 million sq ft of residential and commercial space. Currently, Omaxe is working on 55 residential and commercial projects comprising 24 group housing projects, 16 integrated townships, 14 shopping malls, commercial complexes and hotels.
Omaxe won the project in an auction. It consists of an 18-hole Golf course, a hi-end golf resort, golf villas and apartments and other residential and commercial buildings.
Work on the township will commence shortly. Company chairman Rohtas Goel said it will mark the beginning of company’s initiative in Chhattisgarh. Being the first premier township in Raipur, it will be a landmak project in the area.
Courtesy: Wednesday T.O.I 27 February
Omaxe is one of the India’s largest real estate and construction firms with operations in 31 cities. It has developed residential and commercial real estate projects ranging from integrated toxnships, group housing, office/commercial spaces, shopping malls, hotels, IT and bio-tech parks to special economic zones.
It has already developed nearly 5.59 million sq ft of residential and commercial space. Currently, Omaxe is working on 55 residential and commercial projects comprising 24 group housing projects, 16 integrated townships, 14 shopping malls, commercial complexes and hotels.
Omaxe won the project in an auction. It consists of an 18-hole Golf course, a hi-end golf resort, golf villas and apartments and other residential and commercial buildings.
Work on the township will commence shortly. Company chairman Rohtas Goel said it will mark the beginning of company’s initiative in Chhattisgarh. Being the first premier township in Raipur, it will be a landmak project in the area.
Courtesy: Wednesday T.O.I 27 February
Wednesday, February 27, 2008
DD WILL CONSTRUCT FLATS COSTING RS.1.00 LAKH
If one talks about providing a flat at a cost of Rs.1.00 lakh, the hearer will take it as a plain lie, but DDA has prepared an important plan to make it true. Under this scheme 24500 flats will be constructed for economically weaker section (EWS) in the first phase. DDA has sent a proposal to Central Urban Development ministry that the price of the flat be kept at Rs.1.00 lakh.
As per DDA sources, 24,500 flats would be constructed in first phase for EWS in Narela, Rohini and Dwarka. The design of the flats will be prepared by DDA’s engineering department whereas these will be got constructed by private colonizers. It is given to understand that tenders have been called for the same and process to finalize same is in the last stage. After completion of few other formalities, construction work will be started in May-June this year. A senior DDA officer informed that EWS scheme flats will be allotted only to those jhuggi-jhopri dwellers that will be removed from DDA’s land. He informed that an extreme alertness will be exercised in allotment of flats. After doing survey of poor category people, flats will be allotted by draw of lots. It will be ensured during the draw that such people, who are not covered under EWS scheme, may not join this scheme. Therefore, first survey will be got done to ensure the same. As per the statement of a DDA officer that subsequently such flats will be constructed in other areas of Delhi from where jhuggi-jhopri dwellers have been removed.
DDA officers informed that construction cost of one flat under this scheme will work out to Rs3.00 lakh apprx. Where as this amount does not include cost of land. Despite it, the DDA has sent the proposal to central urban development ministry that they should provide one flat to EWS category people in not more than Rs.1.00 lakh price. The officer further told that in addition to give a rebate in construction of flat and cost of land, rebate will also be given under Jawahar Lal Nehre Renewal Mission so that poor category people may buy this flat.
An officer of engineering department informed that this flat will consist of one bed-room one common room and one kitchen & a toilet. It was first planned that DDA will construct 43,000 EWS flats, but now 24,500 EWS flats and 22,000 LIG flats would be constructed. However, survey is going on based on the need to construct EWS flat in several other parts of Delhi. Construction of these flats will be completed in about four year’s time.
http://www.zameen-zaidad.com
As per DDA sources, 24,500 flats would be constructed in first phase for EWS in Narela, Rohini and Dwarka. The design of the flats will be prepared by DDA’s engineering department whereas these will be got constructed by private colonizers. It is given to understand that tenders have been called for the same and process to finalize same is in the last stage. After completion of few other formalities, construction work will be started in May-June this year. A senior DDA officer informed that EWS scheme flats will be allotted only to those jhuggi-jhopri dwellers that will be removed from DDA’s land. He informed that an extreme alertness will be exercised in allotment of flats. After doing survey of poor category people, flats will be allotted by draw of lots. It will be ensured during the draw that such people, who are not covered under EWS scheme, may not join this scheme. Therefore, first survey will be got done to ensure the same. As per the statement of a DDA officer that subsequently such flats will be constructed in other areas of Delhi from where jhuggi-jhopri dwellers have been removed.
DDA officers informed that construction cost of one flat under this scheme will work out to Rs3.00 lakh apprx. Where as this amount does not include cost of land. Despite it, the DDA has sent the proposal to central urban development ministry that they should provide one flat to EWS category people in not more than Rs.1.00 lakh price. The officer further told that in addition to give a rebate in construction of flat and cost of land, rebate will also be given under Jawahar Lal Nehre Renewal Mission so that poor category people may buy this flat.
An officer of engineering department informed that this flat will consist of one bed-room one common room and one kitchen & a toilet. It was first planned that DDA will construct 43,000 EWS flats, but now 24,500 EWS flats and 22,000 LIG flats would be constructed. However, survey is going on based on the need to construct EWS flat in several other parts of Delhi. Construction of these flats will be completed in about four year’s time.
http://www.zameen-zaidad.com
Tuesday, February 26, 2008
DELHI-MUMBAI INDUSTRIAL CORRIDOR
This is a 1,483 km long dedicated freight corridor that will pass through states like Uttar Pradesh, NCR, Haryana, Rajasthan, Gujarat, and Maharashtra. A band of 150 km on each side of the freight corridor will be developed as an industrial corridor.
Six investment regions and six industrial areas will be developed along this corridor during phase 1 (2008-2012). These will be developed as self-sustaining industrial townships with world-class infrastructure, road and railway connectivity for freight movement to and from ports and logistic hubs.
Ten cities having a population of more than 10 lakh fall within the project influence area (PIA) of DMIC: Delhi, Mumbai, Faridabad, Meerut, Jaipur, Ahmedabad, Surat, Vadodara, Pune, and Nasik. It is expected that these cities will see a lot of development of industrial infrastructure, setting up and enhancement of existing industrial estates, setting up of ITITES and biotech hubs, development of integrated logistic hubs, sea ports, and integrated townships. Some cities, like and Ahmedabad, Jaipur, Nasik and Vadodara lie both within the influence area of DMIC, and are also major nodes on the Golden Quadrilateral project.
These cities are expected to witness large-scale real estate development because of improved accessibility and the availability of large land parcels.
Six investment regions and six industrial areas will be developed along this corridor during phase 1 (2008-2012). These will be developed as self-sustaining industrial townships with world-class infrastructure, road and railway connectivity for freight movement to and from ports and logistic hubs.
Ten cities having a population of more than 10 lakh fall within the project influence area (PIA) of DMIC: Delhi, Mumbai, Faridabad, Meerut, Jaipur, Ahmedabad, Surat, Vadodara, Pune, and Nasik. It is expected that these cities will see a lot of development of industrial infrastructure, setting up and enhancement of existing industrial estates, setting up of ITITES and biotech hubs, development of integrated logistic hubs, sea ports, and integrated townships. Some cities, like and Ahmedabad, Jaipur, Nasik and Vadodara lie both within the influence area of DMIC, and are also major nodes on the Golden Quadrilateral project.
These cities are expected to witness large-scale real estate development because of improved accessibility and the availability of large land parcels.
Monday, February 25, 2008
FAQs On The Reality Market by Anuj Puri Jones Lang LaSalle Meghraj
1. Many large business entities are now branching out into real estate development, while real estate companies are entering other areas. What is the reason behind all this?
Diversification is a natura1consequence of India's economic boom. This boom is happening across various sectors, not only one. The action is spread across telecom, IT/ITeS (Information technology and IT-enabled services) retail, logistics and various other sectors. Any profit-making company has to invest its profits, and it makes eminent sense not to put all eggs in one basket. Moreover, bullion is not very strong and shares are volatile. Government bonds and fixed deposits are at best stable, the commodity market is seeing ups and downs and real estate is subject to various intricate market dynamics. It is not a good idea to depend on any single market when it comes to investment.
2. There is a lot of talk about a 'bubble' in the Indian real estate sector. Many are in a watch-and-wait mode, waiting for prices to crash. How do you see it?
When a bubble develops in any market, it is because prices for that particular commodity or asset have gone through the roof - beyond all affordability the current sentiment in the Indian real estate market is one of quiet outrage over the skyrocketing prices, but demand is still strong. It pays to keep in mind that increased incomes and strong economic fundamentals help balance the scales to a significant extent. We can talk of a 'bubble' when transactions slow down significantly or even grind to a complete halt. That would certainly indicate a dire need for prices to come down.
3. Facility management seems to be the new mantra among developers. What exactly does it entail and what is its future in India?
Developers who offer facility management in their projects do so because they wish to attract quality clients and establish a professional image. Obviously, in today's ever-changing scenario, what constitutes cutting-edge facility management is a very fluid concept. Some of the most advanced projects now offer concepts such as Computer Aided Facilities Management, in which computers are used to automate the collection and maintenance of facilities management information. In India, facility management is still a small sector in terms of volume. However: it is now recognized as a significant component in any real estate project established to garner high returns on investment. We see immense scope for expansion of this sector in context with special economic zones (SEZs), integrated townships, hospitals etc.
4. Is it true that Indians investing in property are getting younger almost every year?
Property buyers in the contemporary Indian context are certainly getting younger The average age of the Indian property buyer has dropped from 45 to 32 over the last decade. This is not surprising, considering that a majority of the young Indian entrepreneurs and IT employees are personally wealthy in their own right by age 32. This new, young breed of property buyers has its collective eye trained on stability and upward mobility in the future.
Courtesy:HT dtd 25-02-08
Diversification is a natura1consequence of India's economic boom. This boom is happening across various sectors, not only one. The action is spread across telecom, IT/ITeS (Information technology and IT-enabled services) retail, logistics and various other sectors. Any profit-making company has to invest its profits, and it makes eminent sense not to put all eggs in one basket. Moreover, bullion is not very strong and shares are volatile. Government bonds and fixed deposits are at best stable, the commodity market is seeing ups and downs and real estate is subject to various intricate market dynamics. It is not a good idea to depend on any single market when it comes to investment.
2. There is a lot of talk about a 'bubble' in the Indian real estate sector. Many are in a watch-and-wait mode, waiting for prices to crash. How do you see it?
When a bubble develops in any market, it is because prices for that particular commodity or asset have gone through the roof - beyond all affordability the current sentiment in the Indian real estate market is one of quiet outrage over the skyrocketing prices, but demand is still strong. It pays to keep in mind that increased incomes and strong economic fundamentals help balance the scales to a significant extent. We can talk of a 'bubble' when transactions slow down significantly or even grind to a complete halt. That would certainly indicate a dire need for prices to come down.
3. Facility management seems to be the new mantra among developers. What exactly does it entail and what is its future in India?
Developers who offer facility management in their projects do so because they wish to attract quality clients and establish a professional image. Obviously, in today's ever-changing scenario, what constitutes cutting-edge facility management is a very fluid concept. Some of the most advanced projects now offer concepts such as Computer Aided Facilities Management, in which computers are used to automate the collection and maintenance of facilities management information. In India, facility management is still a small sector in terms of volume. However: it is now recognized as a significant component in any real estate project established to garner high returns on investment. We see immense scope for expansion of this sector in context with special economic zones (SEZs), integrated townships, hospitals etc.
4. Is it true that Indians investing in property are getting younger almost every year?
Property buyers in the contemporary Indian context are certainly getting younger The average age of the Indian property buyer has dropped from 45 to 32 over the last decade. This is not surprising, considering that a majority of the young Indian entrepreneurs and IT employees are personally wealthy in their own right by age 32. This new, young breed of property buyers has its collective eye trained on stability and upward mobility in the future.
Courtesy:HT dtd 25-02-08
Sunday, February 24, 2008
PRE-ENGINEERED BUILDINGS: WAY TO GO?
The Conventional construction industry in the country today is undergoing a change, with one of its most visible aspects being the emergence of Pre-Engineered Buildings (PEB).
Different from the usual concrete buildings with asbestos-type roofs and walls, a pre-engineered building is made of steel panels. In fact, a PEB is nothing but a steel-framed building with pre-designed components to best suit client requirements.
First introduced in the US, the PEB technique of construction is more popular with industrial townships. The National Highway-8 that leads from Delhi to Jaipur best exemplifies this trend; you can see a number of such buildings dotting the stretch in and around Gurgaon.
Leading the list of PEB's advantages is efficiency Says Mohit Khanna, Director, Lloyd Insulations, which in 1997 became the first Indian company to introduce the concept of PEB, "The use of pre-set methods for welding and predetermined stock sizes reduce the time taken for construction and fabrication," Khanna says.
PEBs are also said to be high on quality
Neeraj Gautam, who heads PEB sales for the northern region at Lloyd Insulations, says, "Since fabrication is done in a controlled and process oriented environment and the material used (steel plates) is sourced from quality labels, PEBs are real value for money"
"Though the initial cost of a PEB turn out to be 5 tol0 per cent higher than conventional buildings, it evens out when it comes to maintenance and early revenue generation," he says.
In India, the major PEB players are Lloyd Insulations, Kirby Buildings and Tiger Steels. According to Prashant Ranjan, manager, sales, Kirby Buildings, PEBs are the future of the construction industry
"In the past few years this concept has picked up quite well. We entered the market in 1990 with a manufacturing capacity of 36 tonnes per annum, and today it has increased to 2 lakh tonnes," he says.
PEB advocates also speak up for its safety.
Construction consultant Manish Shah says, "These buildings are designed in a special a way which makes them safer than conventional buildings, especially in the face of an earthquake."
www.zameen-zaidad.com
Courtesy: HT dtd:- 18thFeb 2008
Different from the usual concrete buildings with asbestos-type roofs and walls, a pre-engineered building is made of steel panels. In fact, a PEB is nothing but a steel-framed building with pre-designed components to best suit client requirements.
First introduced in the US, the PEB technique of construction is more popular with industrial townships. The National Highway-8 that leads from Delhi to Jaipur best exemplifies this trend; you can see a number of such buildings dotting the stretch in and around Gurgaon.
Leading the list of PEB's advantages is efficiency Says Mohit Khanna, Director, Lloyd Insulations, which in 1997 became the first Indian company to introduce the concept of PEB, "The use of pre-set methods for welding and predetermined stock sizes reduce the time taken for construction and fabrication," Khanna says.
PEBs are also said to be high on quality
Neeraj Gautam, who heads PEB sales for the northern region at Lloyd Insulations, says, "Since fabrication is done in a controlled and process oriented environment and the material used (steel plates) is sourced from quality labels, PEBs are real value for money"
"Though the initial cost of a PEB turn out to be 5 tol0 per cent higher than conventional buildings, it evens out when it comes to maintenance and early revenue generation," he says.
In India, the major PEB players are Lloyd Insulations, Kirby Buildings and Tiger Steels. According to Prashant Ranjan, manager, sales, Kirby Buildings, PEBs are the future of the construction industry
"In the past few years this concept has picked up quite well. We entered the market in 1990 with a manufacturing capacity of 36 tonnes per annum, and today it has increased to 2 lakh tonnes," he says.
PEB advocates also speak up for its safety.
Construction consultant Manish Shah says, "These buildings are designed in a special a way which makes them safer than conventional buildings, especially in the face of an earthquake."
www.zameen-zaidad.com
Courtesy: HT dtd:- 18thFeb 2008
Friday, February 22, 2008
THE BRIGHTER SIDE
The negative flutter in the stock markets caused some anxiety to home buyers. After hearing various viewpoints about the real estate market crashing if the Sensex plunges futher, one should point out that real estate is an asset class, which is not directly impacted when the bears take over.
It has been seen over the past few years or more that the increase in the profitability and the Sensex has had a definite impact in the liquidity and sentiment of an average home buyer.
Actually, the stock market has helped boost housing in two ways, it has helped drive the ownership rate to its highest level in history as the sales of the apartments over the past three years have gone up, and it has enabled many people to buy more expensive homes than they might have otherwise purchased.
Since 2004 the stock market has played a key role in that and there’s been a noticeable increase in more expenive houses since the market exploded too. But if the market continues unabated, this will continue to tighten the screws on interest rates.
This is an area of concern to economists and is an important reason why interest rates may soften a bit in coming times.
In any case, a first home buyer will remain a home buyer by default even if the stock markets or property markets are impavted aither way.
Mature investors or home buyers do not put all their “aggs in one basket” to lose them all. The present market is dominated by actual users, Non-Resident Indians who are looking to buy property as first homes.
It has been seen that most buyers place only 15 to 30 % of their own funds and the rest is taken by home loans paid over 15 – 20 years. So even if the markets are impacted negatively, they have their own home to live in and a good time frame of 10 to 20 years to pay out and with the overall picture of india Inc booming, it should not make any significant difference.
Investors who tread on both sides by earning from their stocks and using to pay their profits as EMIs for their property purchase are usually the most affected, as they are hedging completely on their profits from the stock markets but this again may be a temporary phase but can have a very sharp impact during heavy bear sessions.
With the way property prices have increased over the past few years and are probably still increasing while you are reading this, it is a good sign at least that builders may not increase prices looking at the overall sentiment being weak.
No, I’m not out of my mind leading a cheer for a stock market crash. If the stock markets remain low for some time, it will be better for the real estate market if a small correction or a slowdown happens. The figures of notional losses in the real estate side will be far more less than the tangent stock market figures. Also, it should be seen very clearly that our homes which we reside in should be kept away from the analysis and impact of up and down as if the property markets go up we don’t sell nor do we sell when they go down. If you own an already built out property, be it an office or an apartment, and if the same was meant for investment, in most cases it will be leased out giving you returns or in the market hunting for a tenant. If it is under constructuon you would have bought it at a far lower price than the value it is today. In any case, for a new entrant buying a new home in the top end sengment of the grown property market, there is a risk element but then a home is a home; one buys it to live in it and not to speculate, as in the stock market. Over the past few months, builders have increased prices in line with the Sensex and if you clearly notice, there has been a parallel growth; as the stock market grew real astate price continued an upstream steady move. During march, usually the stock markets get a bit volatile as they are dependent on the third quarter results and then the expectations from the Budget. Investors who have exposure in stock and looking to exit and enter into reality should be more careful keeping in mind their immediate or future need of funds for their immediate or future need of funds for their proposed EMIs or property buying plan. You need to protect your back and I guess having a roof on your head for many of u does that.
It has been seen over the past few years or more that the increase in the profitability and the Sensex has had a definite impact in the liquidity and sentiment of an average home buyer.
Actually, the stock market has helped boost housing in two ways, it has helped drive the ownership rate to its highest level in history as the sales of the apartments over the past three years have gone up, and it has enabled many people to buy more expensive homes than they might have otherwise purchased.
Since 2004 the stock market has played a key role in that and there’s been a noticeable increase in more expenive houses since the market exploded too. But if the market continues unabated, this will continue to tighten the screws on interest rates.
This is an area of concern to economists and is an important reason why interest rates may soften a bit in coming times.
In any case, a first home buyer will remain a home buyer by default even if the stock markets or property markets are impavted aither way.
Mature investors or home buyers do not put all their “aggs in one basket” to lose them all. The present market is dominated by actual users, Non-Resident Indians who are looking to buy property as first homes.
It has been seen that most buyers place only 15 to 30 % of their own funds and the rest is taken by home loans paid over 15 – 20 years. So even if the markets are impacted negatively, they have their own home to live in and a good time frame of 10 to 20 years to pay out and with the overall picture of india Inc booming, it should not make any significant difference.
Investors who tread on both sides by earning from their stocks and using to pay their profits as EMIs for their property purchase are usually the most affected, as they are hedging completely on their profits from the stock markets but this again may be a temporary phase but can have a very sharp impact during heavy bear sessions.
With the way property prices have increased over the past few years and are probably still increasing while you are reading this, it is a good sign at least that builders may not increase prices looking at the overall sentiment being weak.
No, I’m not out of my mind leading a cheer for a stock market crash. If the stock markets remain low for some time, it will be better for the real estate market if a small correction or a slowdown happens. The figures of notional losses in the real estate side will be far more less than the tangent stock market figures. Also, it should be seen very clearly that our homes which we reside in should be kept away from the analysis and impact of up and down as if the property markets go up we don’t sell nor do we sell when they go down. If you own an already built out property, be it an office or an apartment, and if the same was meant for investment, in most cases it will be leased out giving you returns or in the market hunting for a tenant. If it is under constructuon you would have bought it at a far lower price than the value it is today. In any case, for a new entrant buying a new home in the top end sengment of the grown property market, there is a risk element but then a home is a home; one buys it to live in it and not to speculate, as in the stock market. Over the past few months, builders have increased prices in line with the Sensex and if you clearly notice, there has been a parallel growth; as the stock market grew real astate price continued an upstream steady move. During march, usually the stock markets get a bit volatile as they are dependent on the third quarter results and then the expectations from the Budget. Investors who have exposure in stock and looking to exit and enter into reality should be more careful keeping in mind their immediate or future need of funds for their immediate or future need of funds for their proposed EMIs or property buying plan. You need to protect your back and I guess having a roof on your head for many of u does that.
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