For private circulation only

Real Estate News Letter
7th June to 13th June, 2010

1. Interest Rates 2. Infrastructure 3. Industry News 4. Private Equity News

5. Regulatory Buzz 6. Public Markets
7. Land Deals 8. Residential 9. Commercial/ Retail 10. Township 11. SEZ 12. Hospitality 13. Input Cost

Interest Rates
Even as growth in the home loan market stayed in the single digit in 2009-10, larger banks managed to expand their market share in this segment, by edging out smaller players. The top 10 banks' home loan portfolio grew at 13.8 percent for 2009-10, even as overall bank lending to housing grew only 8 percent. State Bank of India saw a 32 percent growth in its home loan portfolio for 2009-10 and became the top mortgage lender among banks. The top ten banks garnered 65 percent of the total outstanding housing loans (of scheduled commercial banks) in 2009-10, up from 61.5 percent last year. Housing loans were among the rapidly growing segments of retail lending, which saw a tepid 4 percent expansion in 2009-10. The Hindu Business Line, 7 June, 2010,

ICICI Bank has reintroduced the special home loan scheme it had launched in April this year with fixed and floating rate options. The scheme is open from June 1 to June 30, 2010, and the bank will charge an interest rate of 8.25 percent in the first year and 9 percent in the second. The bank has sent e-mails to customers about the special home loan scheme. It had withdrawn the scheme at the end of April. Financial Chronicle, 8 June, 2010, Mumbai

Teaser home loan rates of some banks, including State Bank of India (SBI), which charges only 8 percent for the first year may rise, as Reserve Bank of India (RBI) has not allowed banks to lend below the base rate. While SBI indicated that its base rate is likely to be around 8 percent, for others banks the rate will be 8.25-8.5 percent.

Business Standard, 7 June, 2010, Mumbai




Teaser loans that insulate home loan borrowers from interest rate fluctuations in the initial years is here to stay with the country‟s largest lenders looking to increase their share in the lucrative home loan market. The Financial Express, 8 June, 2010, New Delhi

the Mumbai Metropolitan Regional Development Authority (MMRDA) is taking a keen interest in developing Wadala by contemplating providing Metro connectivity for the suburb. One of the nine corridors in the pipelines is the Ghatkopar-Mulund line which we can extend it up to Wadala. “We are thinking of extending the Metro line up to Wadala.” said Metropolitan Commissioner Ratnakar Gaikwad. Hindustan Times. 7 June. The MMRDA is constructing a nine-route Metro rail across Mumbai. 2010.050 crore.Infrastructure METRO BOOST FOR WADALA ON CARDS Days after its Wadala plot got sold for a whopping Rs 4. Mumbai .

Countries like the US. 56 per cent of the total rental is paid to the municipality as tax. though the group will not have any legal binding. “At present. “We are quite positive about the new regime in the KMC. but the two other government agencies. The Times of India. “There are still land in possession of KMC on EM Bypass. the developers are not clear if there will be more transparency in land dealings. This is to curtail speculations and another realty bubble burst in the years to come. 2010. and have lots of expectations. Interestingly. Emmar MGF and LIC were the winners in land bidding process. Two months back an RBI report on asset price monitoring system (ASMS) advised formulating of the indices at the earliest. “We expect the new tax system to come into effect soon. It was not only KMC that had been selling land at exorbitant prices. with LIC setting a record by paying Rs 55. as the old system is an outdated one. . had earned through land deals. as it will reduce complexities and increase revenue for the government as well. the the Kolkata Metropolitan Development Authority (KMDA) and West Bengal Housing Board (WBHB). KMC still possess pieces of land in plush locations such as EM Bypass.” said Rungta. just from three land deals. This kind of taxation is there no where in the world. 7 June. KMC had earned about Rs 629 crore. and we hope that they start bidding process for the land in a more transparent and expeditious manner soon. KMC for the last five-six years. “The unitary system of tax collection will help the real estate industry to a great extent. While many state governments have replaced the old system. In fact. back in 2006-07.” said Chopra.” said Pradeep Sureka of the Sureka Group. The new system of taxation was expected to come into effect by the financial year 2010-11. West Bengal has been lagging behind. DLF Hilton. One of the impending issues before the KMC has been the adoption on unitary method of taxation. Confederation of Real Estate Developers Association of India (CREDAI). According to sources.” said Santosh Rungta. The old system is outdated and an inspector raj regime. by far the most expensive area in the city. Realtors wait for new regime With the Left Front losing the mandate in the Kolkata Municipal Corporation (KMC) elections.FROM DHARAVI TO SHANGHAI Industry News A‘BAD AMONG 11 CITIES ON RBI’S REALTY INDICES LIST The city happens to be among 11 in the country for which Reserve Bank of India (RBI) would prepare two realty indices — one each for commercial and residential properties. President. “No one can say that if the land deals will be more transparent. Ahmedabad However.” said Pradeep Chopra of P S Group. About 10.50 per cent is service tax. had been earning money by selling land to developers in prime locations through the bidding process. city real estate developers are keenly awaiting Mamata Banerjee's policies towards the development of city infrastructure. although the KMC had appointed a consultant for bringing in the new system. have such indices to refer to realty prices. “The new KMC regime is expected to form an advisory group for land dealings. The mayor is expected to listen to the recommendations of the group.” said a prominent city based developer.24 crore per acre for a 5-acre plot on the road. 33 per cent is paid to the income tax department.” said a realtor. in the new KMC regime also. Out of the rest. France. Singapore and Canada.

We have all processes. However. Now we are concentrating on the single plant and later we can look at multiple plants. Have you tied up funds for this project? Up to 400 Mw. We have also fully invested the fund. with the help of debt. but we have limitations to execute these. Edited excerpts: Why did you go into power. we can do on our own. Don't you think home prices have shot up too fast in too short a time and have become unaffordable for the common man? It is bound to happen. Usmani said. Niranjan Hiranandani. Arshad Usmani. Supply has to increase. More land has to be made available for developers. as markets went down. We still have sufficient money to do our projects. we realised it was not worthwhile and dropped the idea. environmental clearances and raw materials in place. Delhi Actually. 7 June.” said Rungta. a senior industry player said. Then we will ramp up to 1. which is doing projects in Chennai and other places. My brother.000 Mw and ultimately to 2. we were looking at an infrastructure area such as roads. 2010. Surendra. bridges and so on.Industry News This apart. When we were doing our due diligence. The Economic Times. After that. Markets must justify the investment. Mumbai Niranjan Hiranandani. when you could have gone into other related areas? . which is listed on the AIM (Alternative Investment Market) in London. one of the largest privatelyheld realty developers. talks about the company‟s plans and the property market in the country." Lokhandwala Construction's chief operating officer. has roped in PE investors in Hiranandani Realtors. said here. "Real estate prices are unlikely to decline but it will stabilise at the current level. there may be some correction in prices in Tier II cities. the group's co-founder and managing director. Business Standard. 2010. 7 June. which have witnessed a sharp jump in real estate prices. What is the progress on that? We are completing a 160-room hotel in Mumbai by September. 'Home prices are shooting up due to overwhelming demand' The Hiranandani Group. when volumes are not enough to meet the growing demand for homes. We had also zeroed in on a company to buy.300 Mw. We have postponed the rest. Why are you not looking at public markets to raise money for your property company? There is a time and place for everybody. and expect the problems of waterlogging to be a solved soon. “We have great expectations from the new regime. The prices in Mumbai are unlikely to correct due to scarcity of land. You were planning to develop five hotels in the country with an investment of Rs 650 crore. What are your plans in power? Will you also be doing other power plants? First. In a chat with Raghavendra Kamath. REALTY PRICES IN MUMBAI SEEN STABLE: LOKHANDWALA CONSTRUCTION Real estate prices are unlikely to witness a correction and may remain stable at current level. realtors are looking opportunities in areas like slum development. such as private equity (PE). we will do 400 Mw. Then we thought of power as a second option and that's why we are here. There are opportunities in multiple areas. I expect it to be proactive in reforming the whole KMC. recently announced a foray into the power sector with a gas-based power project near Pune. we have to look at external sources. Hiranandani Group MD.

sured returns. you need to sign an agreement with the develop. How do you look at it? One has to be there in the affordable segment to stay as a big player and generate big volumes. 2010. Own a property and get as. During the agreement period. Government.ty is further leased out to some tenant. you will get another set of postdated cheques.tor.ter possession? “There is no lock-in period. What happened to that? We will do it. I believe in the next 10 years. By affordable. but on a six-month trend. 7 June. You were planning to launch affordable housing projects by the end of 2009. they will do 50 per cent of these projects.Industry News Don‟t you believe property developers have to be blamed for the price rise? Everybody has to be blamed. Property consultants say home sales are down by 20-30 per cent since the March quarter. Before possession: The de. how long would you have to remain in this agreement af. I mean a house equivalent to four years‟ income. if the construction is not over.ue with the contract. what more would you ask for. If so many people come to Mumbai.stance. A lot of developers who have turned to affordable projects during the slowdown are once again focusing on premium housing. After possession: Once you get the possession of the proper. Af. being offered by only a few developers in north India. Get Rs13.ter a year. the developer signs the agreement with the owner for two to three years after the date of possession. a Delhi-based developer: “The developer will find a tenant for you or you decide to sell the property at a premium or you set your own business in that space. they will give you an. but generally we try to sign an agreement for the next two years after possession. If it were really true. Mint Money read the fine print for you to ex.“ says Gupta. What has been your experience? Volumes have come down but it is very seasonal.“ Does that sound famil. Earth Infrastructure. private developers must have done 10 to 15 per cent of affordable housing projects. has a tie-up of 51 months.other set of 12 cheques. Usually.“ So. In the past 10 years. The developer finds a tenant for the space on a rent-sharing agree. the proper.000 per month return till possession and lease it out at Rs18.ty. either they will go to slums or the rates of existing properties will go up because of overwhelming demand. municipality. What's the scheme? To avail this scheme. there is a growth. In case you decide to contin.8 lakh in a fully furnished five-star flat. Says Vikas Gupta. Often. At the end of this period. developers give 12 cheques in advance.plain how such schemes work and assess whether it makes sense for you to go for them. higher than what a regular bank fixed deposit would give you.ment. including 27 months of construction. developers and so on. in most . Mumbai cases. for in. you may have received an SMS claiming to give you such a deal or read an advertisement somewhere in a newspaper. Earth Infrastructure Ltd. It is taking time to get the land together and obtaining permission Business Standard.000 per month after possession.iar? In all probability.veloper gives you postdated cheques for a specified period for your monthly returns. On weekly and monthly positions there are hiccups. direc. with its Property ads promising returns: buy at own risk Invest Rs10. you can either exit the project or continue with the specifying the monthly return you would get till you get possession of the property at an agreed rate of interest. if you do not provide them housing. it's the developer's responsibili.ty to maintain the premises and keep it clean.

The Indian Express. This gives them the necessary cash to complete the project and the buyer gets healthy returns. Mumbai REALTORS EYE SMALL CITIES FOR MORE GAIN As buyers in metros turn wary of rising home prices. HDFC chairman Deepak Parekh on Monday asked the government to break it and make it easier for the common man to buy a home. “Price escalates at the time of the completion of the property. 2010. Says Anil Sharma.tor. to get monthly assured returns. Says Sunil Kumar Dahiya. the value of property increases at this stage.“ Developers usually fix the rate of rental return at the time of signing the contract for the term after possession. it will be nightmare to get these. builders and politicians. 8 June. which ran these schemes on two of its pro. Ackruti City and the unlisted Shapoorji Pallonji & Co and Kumar Urban Developers are chasing redevelopment contracts. Knight Frank In. Amrapali Group. Live Mint. Mumbai PAREKH: BREAK NEXUS BUILDERS. However. “Usual. getting your own tenant may work bet.newing the contract. Apart from the clear advan. 2010. The number of approvals that are needed if you have the land and you want to build on your own. Housing Development and firm. Service apartments are meant for business travellers and of increased rental return. managing direc. Besides Godrej realty unit. However. too. developers are turning their focus to Tier. DB Realty.cial projects till date." Godrej Group Chairman Adi Godrej said. we will announce few large redevelopment projects. as the policy on redevelopment has been clarified.” he said. Ltd. 2010. POLITICIANS OF Warning that a nexus between builders and politicians was behind high real estate prices. This rate may go up if the project looks up coming up at Knowledge Park 5 in Greater Noida. Vigneshwara Developers. it is profitable to renew the contract as the property by then matures and the rental return. national director (capital transactions).“ says Amit Goen. you need to agree to certain terms and conditions of the developer and come to terms with some risks. "Now we have the opportunity to do large redevelopment projects.dia Pvt. 8 June.ter for you since if you renew the contract. chairman. the lock-in period is usually higher.Industry News buyers for one of its commercial complex. increase your rental income. a Delhi-based developer. Godrej Properties. thereby. The process is the same for such offers across all property categories.II and . in case of service apartment projects. This is in the range of 13-18%. So.jects: “These schemes have been widely used for commer.ka. “I think scarcity creates more value and scarcity keeps prices up and there is nexus between developers. increases. you have the option of re. We are hopeful that within the next six months. The Economic Times. Major developers had such schemes in the past. you will have to share the rent with the developer. a property consult. Mumbai REDEVELOPMENT IN CROWDED MUMBAI A FILLIP FOR REALTY Greater clarity in rules and pressing need for more houses in land-starved cities like Mumbai has had builders eyeing opportunities for redevelopment after a 2-year market slump and recession. 8 June.“ Can you renew contract? Once the agreement gets over. The caveats They say you need to give some to take some.ists.

Of a total of 19 bidders. 8 June. UK and Singapore. is focusing on smaller cities like Meerut and Agra. Most major developers are lining up projects in these cities. aiming to turn Asia‟s largest slum into a commercial and residential hub.11. For private and open land.000 per month on rents. “The delay in taking a final decision and a slump in the property prices may make the project unviable for bidders. some houses priced at half a million dollars in 2006-07 are now available around $200. Omaxe has shifted its focus to smaller cities. a global realty consultancy. Burgeon Wealth Advisors. “The proposal seeking permission to give FSI of 4 for the project will be put up before the state in a day or two. the state will not get the premium that it would have got from private bidders.‟‟ The meeting chaired by Chavan was attended by T C Benjamin (principal secretary. Delhi each. the state‟s proposal to give an FSI of 4 for redevelopment will be forwarded to the CM for his approval.” says Anurag Mathur.” says Maneesh Kumar. DLF. The Financial Express. Urban Development). Other than going long on gold and cutting deals in the real estate space they have entered the private equity space.33 and the same for government properties is 3. has been stalled for several years. The Times of India. the FSI cap is 1. The project. Some of their more defensive strategies include investing in shortterm debt instruments and structured products with capital protection. “Many HNIs with children studying in the US are used to paying $2. the projects were either scrapped or delayed. Mail Today. Sitaram Kunte (secretary. “If Mhada develops the project. There are different kinds of land use and differential FSI in Dharavi. Housing) and Mhada CEO Gautam Chatterjee.‟‟ the official said. In the US. Now that the economy is improving developers are once again focusing on these smaller towns. He added that the option of Maharashtra housing and area development authority (Mhada) developing the project was also discussed. 2010. Even the metro player. managing director. HNIs are tapping opportunities in the realty space in countries like the US. part of euro zone.000-3. so they are saying—why not buy a house. 2010. adding.000 overseas every year. Under the Liberalised Remittance Scheme of RBI. Ansal Properties. Chavan asked for options available with the government if private bidders failed to turn up for redeveloping the project. 8 June. Mumbai Chavan to decide on FSI for Dharavi redevpt plan Chief minister Ashok Chavan reviewed the p ro p o s e d Dharavi redeve l o p m e n t project in Mantralaya on Monday. The administration is considering developing Sector 5 first but no conclusive decision has been taken in connection to the issue. is now exploring smaller cities.‟‟ he said. Some are even scouting for houses in debt-ridden Spain and Greece. “The state plans to divide the project into five zones of about 30 hectares STREET SMART IN TOUGH TIMES India‟s high net worth individuals are heavy on gold and real estate but have kept currency out of their investment plans as they look beyond equities to maximise their returns. too. only seven are still in the race to develop the project.000.‟‟ said Benjamin. MD. 9 June. 2010. every resident individual can remit up to $200. Meanwhile.Industry News Tier. Mumbai . Cushman and Wakefield India. This is because many houses abroad have become dirt-cheap after the financial meltdown. “Developing smaller cities always have good potential for realty developers and many of the top developers had projects planned in these cities. But because of the slowdown. According to senior Mantralaya officials from the housing department. in the meeting.III cities where the margins are good and demand high.

“A key reason for their emergence is the fact that there are no entry barriers for these developers. and Deepak Nirula. “This time.Industry News PROPERTY PERCENT PRICES UP 54 Property prices in the national capital region (NCR) has increased by up to 54 per cent during the first three month of this year due to higher demand. For instance.” Gurgaon's Golf Course Road and Sohna Road have seen the highest appreciation in prices with 54 per cent and 43 per cent jump during January-March quarter. lMumbai-based NGO Dignity Foundation has developed a retirement township over 25 acres at Neral (an extended central suburb of Mumbai). respectively. inexpensive ones have helped the realty sector in many parts of India recover fast from last year‟s slump. Ltd. New Delhi Retirement complexes gain ground growing number of aged makes such projects viable economically lHarpal Singh. was relaunched by its developer Unitech Ltd—now with a major portion converted into smaller flats available at discounted an ultra-luxury residential project in Noida. The Financial Express. 9 June. near Gurgaon. mentor and chairman emeritus of Fortis Business Head Vineet Singh said in statement. Experts said most of the launches in the latter half of 2009 were in the affordable housing segment. luxurious projects to build smaller apartments at reduced prices. said this happened because developers decided to reformat their large. “And in a corrected market. Similarly. the erstwhile managing director of restaurant chain Nirulas. The national capital region (NCR) region has always been an attractive destination for buyers as it provides high return on investments. reducing their sizes and selling them at lower prices. 2010. several smaller developers started offering apartments at discounted rates. . Ashutosh Limaye. according to a study conducted by realty portal 99acres. which had been launched as Live Mint. New Delhi AFFORDABLE HOUSING PROJECTS HASTEN RECOVERY IN REALTY The flexibility shown by developers in converting luxurious residential projects into smaller. Grande. he added.” said Anshuman Magazine. residential agency at Knight Frank India Pvt. CB Richard Ellis South Asia Pvt. 9 June. Ltd. a retirement community development in Chennai. Gaursons India Ltd reformatted luxury apartments at a project in Indirapuram in Ghaziabad. 2010. 99acres. lLIC HFL Care Homes operates a retirement village in Bangalore and plans to take it national. Rajgarh (Himachal Pradesh) and the NCR. national director. chairman and managing director. associate director of strategic consulting at property consultants Jones Lang LaSalle Meghraj. a property consultancy. a property research firm. residential real estate demand did not let the global slump affect the Indian market (for too long). cheaper apartments. have set up Impact Senior Living Estates (ISLE). on the outskirts of New Delhi. lChennai-based realtor Baba Shankar has founded Clasic Kudumbam. with smaller.” said Anand Narayanan. And developers Vipul Group relaunched Vipul Gardens at Dharuhera. a company that develops specialised housing for senior citizens at Amritsar. compared to the year-ago period.

There is also a monthly rental charge of Rs 8.Industry News lDelhi-based realtor. “It is expected that by 2025 this figure will be 177 million and by 2050. “Companies are targeting people who believe in lifestyle living. The new entrant Acron is pursuing the long-term lease model. which is a popular concept in developed countries. 9 June. Most of these retirement complexes offer the best of healthcare. including Kerala. lGoa-based diversified entity Acron Group. with interests in realty. But these facilities do not come cheap. said parents living separately is no longer being considered a stigma. “The immense potential of this segment. particularly real estate companies. Acron Group. Pranay Vakil. These are people who are financially well-off and would want a more comfortable life with the same age group. there are grab rails in bathrooms. The one-time deposit for a 1BHK apartment is Rs 20 lakh (fully refundable with an option of capital appreciation). or more than one in five persons. Its apartments can be leased for 20 years with a minimum lock-in of 12 months. a real estate firm in the city. seats near lifts. with a focus on the elderly. Jaipur and now at Lavasa in Pune. “While there are old age homes run by charitable institutions / NGOs catering to the particular strata of the society. security and wellness features. chairman. has announced the launch of its web-based real estate transaction website (www. said senior citizens are no longer considered withdrawn. associate vice-president (senior living). John Britto. about 240 million. will be senior citizens. 2010. operates a chain of retirement resorts christened Utsav in Bhiwadi. For instance. Knight Frank India.” he said. infrastructure. Saumyajit Roy.430 sq ft (chargeable area) for 3BHK duplex villa. offers an array of opportunities to the Indian real estate market. hospitality and retail. Mumbai All these examples show that the idea of having retirement will launch a 56-appartment retirement complex at Baga beach in three months. Ashiana Housing. said theres a big market for companies catering to the retired provided they have a right mix of housing products and specialised support and lifestyle services. These are elderly citizens whose sons and daughters are wellsettled in their personal and professional lives and are living separately (within India or overseas). and emergency alarm buttons within the dwelling unit. the concept of a lifestyle senior living community is still in its infancy in India. with its unique needs and promises. . risk averse and financially dependent.” said Britto. DNA. The company plans to invest Rs 150-200 crore to REAL ESTATE TRANSACTION WEBSITE LAUNCHED Tian Constructions.” the report said. set up retirement complexes in 10 locations.000 towards maintenance and upkeep of the residential community. anti-skid tiles in bathrooms and kitchens. is catching up with corporate India. There is a significant percentage of the existing and would be senior citizens who are accustomed to a certain way of living and would want to maintain that quality lifestyle minus the routine hassles. hallways and stairs. Coorg and Pondicherry. A recent report by Jones Lang LaSalle Meghraj (JLLM) said there are over 81 million elderly people in India.” he said. considering the rising number of the aged who are financially sound. Such a move makes economic sense. Utsavs Lavasa project costs between Rs 27 lakh for a 915 sq ft (chargeable area) 1BHK to Rs 82 lakh for a 2. Maintenance and parking is over and above the cost of the apartment. director.tain-con. Companies also offer lifetime lease option. For instance. JLLM.

10 June. The customer can customise their residential units simultaneously viewing its cost implications. colour of the tiles to the number of rooms. 2010.” stated a release issued by the company. The Indian Express.Industry News “The transaction website is the one-point contact for the investor for all buying solutions. It acts like a decision-making tool. Pune . From simple bathroom fittings. They have the opportunity to choose the layouts according to their budgets.

has acquired a 74 percent stake in 247 HCC Park for Rs 574 crore from the Hindustan Construction Company Group. a joint venture between Milestone Capital Advisors and IL&FS Investment Managers. The commercial property of 18-lakh sq.Private Equity News IL&FS MILESTONE BUYS 74 PERCENT IN HCC PROJECT FOR RS 574 CRORE IL&FS Milestone Realty Advisors. Mumbai . IL&FS Realty Advisors said the area under investment was 11-lakh sq. said the investment was through a real estate investment trust modelled fund of Rs 500 crore. Ashish Joshi. The Hindu. ft at Vikhroli in northeast Mumbai is valued at Rs 775 crore (enterprise value). said. The average lock-in period for the closed-ended funds was four to six years. The ticket size of the fund was Rs 10 lakh for individuals and Rs 25 lakh for institutional investors. there is a supply overdose for all kinds of commercial properties and we were on the look out for properties with stable rentals rather than unnaturally high rentals which can lead to artificial yield assumptions. Milestone Capital. managing director and chief executive officer. Milestone Group. “In the current scenario. 2010. 11 June. besides two other funds. ft. Managing Partner of Real Estate. Ved Prakash Arya.

On the basis of complaints from individuals who have booked flats from various developers. a market watchdog created to check abuse of market dominance.” said a lawyer representing the government on the Home Solutions Retail case. CCI has also decided to look into complaints of misleading advertisements. The high court on 18 May stopped the government's move in a temporary order on a petition filed by Future Group's unit Home Solutions Retail India Ltd. change in terms and conditions of sale agreements and developers making it almost impossible for a customer to opt out. apart from looking into specific complaints against the market leader. were facing such problems. In a bid to check the rampant malpractices in the realty sector. the Competition Commission of India (CCI) has decided to. but the buyers are yet to get possession. Dubaibased Lifestyle International and department store operator Shoppers Stop Ltd. 7 June. without knowing the exact nature of the complaint. DLF officials declined to comment saying they had not received any notice from CCI. 7 June.” a DLF spokesperson said. CCI. appropriate to look into the general practice. Another individual has alleged DLF had initially announced a project as an 18-floor apartment. Live Mint. We will definitely file an appeal. which became fully functional last July. therefore. irrespective of any specific developer. Agrawala is now representing a dozen such clients that include Tata group's Trent Ltd and Infiniti Retail Ltd. the source said. It is. The commission sources said it was more of an industry issue and buyers in general. says Rishi Agrawala. 2010. a CCI source said. “We have not received any letter from CCI in this regard so far. which pertains to abuse of dominance by a player in a relevant . on its accord. DLF. Nearly 30 firms have filed for a stay on the service tax being levied after Home Solutions Retail secured the injunction in May. CCI has referred the complaints against DLF to the director general-investigations for a probe. Many other retailers are also moving court in this matter.Regulatory Buzz REALTY FIRMS COME UNDER CCI SCANNER The commission plans to probe complaints against DLF. sources said. could also look into similar practices by other developers. New Delhi According to one such complaint. These complaints were admitted under Section 4 of the Competition Act of 2002. Therefore. we would not like to comment on this matter. but later on added 10 storeys without informing the buyers. Delhi GOVT TO APPEAL AGAINST HC STAY ON SERVICE TAX ON RENTALS The Indian government will appeal against a Delhi high court order that asked the government not to levy service tax on rentals of commercial property. geography. CCI is learnt to have “prima facie” found that DLF had abused its dominant market position and the agreement was "one-sided" in nature and there were "variations from the initial stipulations". The commission. a lawyer representing the store operator. enquire if various developers are misleading the buyers. DLF had promised to complete its Blair residential project in Gurgaon in 2009. is empowered by an Act of Parliament to penalise the guilty or ban a prevalent malpractice. along with specific complaints Business Standard. “Petitions are coming every day. When contacted. 2010. Taking note of the general complaint of delayed possession.

The city government. which wanted a uniform stamp duty of 5 percent across the country. As per the proposed circle rates. The Asian Age. 2010. as the Central government has asked all state governments to model their respective legislative proposals on the Model Land Titling Bill.Regulatory Buzz BUYING PROPERTY MAY GET MORE EXPENSIVE Brace yourself to shell out more for purchasing property in the national Capital. RBI said. the two new categories added this time. Now. which was to be sent to the Union government for approval. Rs 1. In a communication to chief executive officers of UCBs. The exposure to compute the ceiling will include fund and non-fund based facilities PROPERTY TITLING BILL HITS HURDLE The Delhi government will have to carry out fresh drafting exercise for its Property Titling Bill. New Delhi . Both A and B colonies are posh colonies divided into rich and super rich categories. had drafted its Delhi Urban Property Bill. The 15 per cent ceiling was reckoned on total deposits at the end of March 31 of the previous financial year. the Delhi Government is likely to increase the circle rate of properties ranging from 30 percent to 150 percent. 2010.5 percent since August 2005 under pressure from the Centre. New Delhi GOVT AGREES TO CUT DOWN STAMP DUTY The state government has in principle agreed to reduce stamp duty from 7 percent to 5 percent after taking into consideration various factors. 2010. The new circle rates will be fixed according to the properties falling under various categories.25 lakh is proposed for colonies falling under category A while Rs 1 lakh per sqm for category B colonies. 7 June.5 percent to 11 percent and then to 9. the RBI norm permitted them to use up to 15 per cent of deposits for giving advances to housing loans and other block capital loans. including the enhancement of land value in commercial areas and tier-II cities across the state. Working capital loans to small contractors against hypothecation of construction material are exempted from the existing norms that allows UCBs to use 15 per cent of the total deposits for giving loans for housing and commercial real estate. urban banks can use up to 15 per cent of deposits to provide housing. real estate and CRE loans. 7 June. In order to meet the expenses and deficits. The minister said the registration charges were periodically reduced from 13. after completing all exercise by seeking public feedback. The Pioneer. The Times of India. Stamps minister Gade Venkat Reddy said on Wednesday that officials of the stamps & registration department were readying proposals to reduce the stamp duty keeping in mind the revenue targets set for the department in the budget. The circle rate of properties is the system in which the Government fixes the minimum or maximum rate of the land depending on the categories of colonies it falls in. RBI said it has fine-tuned the rule for aggregate limit for housing finance. 2010. Earlier. the Delhi Cabinet is set to give its nod to a proposal to hike circle rates for sale and purchase of properties in the capital on Monday. After increasing the registration fee for properties and road tax for luxury cars. Hyderabad New real estate exposure norms for urban co-op banks Reserve Bank of India has revised the norms for urban cooperative banks for giving loans to the housing and real estate (RE) segment. 2010. 10 June.

A higher ratio allows more construction in the same plot. claiming that under the new rule. Mumbai . 10 June. Jones Lang Lasalle Meghraj‟s Joy Sanyal said apartment prices would climb. would be announced soon. 2010. The Financial Express. Business Standard. 2010.91 crore from a little less than Rs 50 lakh after its redevelopment agreement with Ankur Realty. its tax liability had shot up to Rs 1. Stamps & Registration Gade Venkat Reddy said the date from which the reduction of the fee would be implemented. Many urban banks and federation of cooperative banks had approached the central bank for clarification on norms that restricts exposure to real estate including housing loan and commercial realty to 15 per cent of deposit base. 2010. 10 June. The Hindu.Regulatory Buzz extended to customers. The court set aside the permission given by the state government to increase floor space index (FSI) from 1 to 1. Hyderabad TAX LIABILITY SET TO REDEVELOPED BUILDINGS RISE FOR HC FLOORS MAHARASHTRA ON FSI The Bombay High Court on Thursday dismissed a Maharashtra government decision that would have allowed more building activity in the suburbs of Mumbai. Mumbai LAND REGISTRATION FEE TO COME DOWN After wavering for months. “Affordable housing may also take a hit. Officials have been asked to work out details of the loss to the exchequer due to this reduction as compared to the additional funds expected from the Centre under JNNURM. Surjeet Pal of Elara Capital added that developers will have to rework costs of projects in suburbs and prices will most likely rise since projects had been planned with 1. 11 June.33 FSI in mind. the Minister added. Disclosing this at a media conference here on Wednesday. the State government has finally decided to reduce registration charges from 9. 10 June.33.” he said. Minister for Endowments. 2010. Mumbai The tax liabilities of redeveloped housing societies are set to skyrocket after the Bombay high court upheld a new rule allowing I-T authorities to calculate capital gains tax based on stamp duty paid on the development agreement. which paid The Times of India.5 percent to 5 percent in urban areas in compliance with the condition laid by the Central Government to be eligible to receive funds under Jawaharlal Nehru National Urban Renewal Mission (JNNURM). A division bench of Justices F I Rebello and Amjad Sayed dismissed the petition filed by Bhatia Nagar Cooperative Society in Kandivli (west).

primarily from Unitech. Satra. ft of . Mumbai Unitech Infra eyes Rs 2. the final valuation is underway and financial details would be available after it gets approvals from regulatory bodies. The infrastructure firm would pursue build-operatetransfer (BOT) opportunities in the highway and power transmission sectors. is looking at an order-book of Rs 2.200 crore from just the construction business this fiscal.64 crore a year ago. The three sea-facing plots with old buildings on them will be consolidated for a luxury housing project. The Hindu Business Line. Satra Properties. However. The real estate developer will use its existing relationships to get large government and private contracts awarded to Unitech Infra.7 crore in FY10 against Rs 41. It intends to generate and distribute captive power within the existing and future developments of its parent firm.000 crore. the second-largest real estate developer in the country. New Delhi ORBIT BETS ON ACQUISITIONS TO PROPEL GROWTH Orbit Corp. 2010. MARATHON FY10 NET ZOOMS Marathon NextGen Realty has clocked a 251 percent vault in its net profit to Rs 146.50 per share. said the new projects being undertaken by the company will improve the financial performance in the coming days. which gives it a low leverage. Mumbai Unitech had said it has about 35 msf under construction and plans to undertake aggressive launches. the demerged entity of Unitech.200 crore construction orders this fiscal Listing likely by year end Unitech Infra. 8 June.Public Markets SATRA PROPERTIES NET RISES TO RS 9 CRORE Satra Properties has reported that its net profit in the financial year 2009-10 has risen over four times to Rs 9 crore (Rs 2 crore) on revenue of Rs 206 crore (Rs 106 crore). Unitech is expecting to list the infrastructure business before the end of calendar year 2010. 8 June. based on assets it owns and has a debt of Rs 350 crore. The demerger is aimed at increasing the focus on the companys infrastructure businesses and providing significant financing flexibility for the infrastructure projects in terms of access to longerterm and cheaper financing as compared to real estate projects. The New Delhi-based Unitech Infra has an orderbook of about Rs 500 crore from the power transmission business. inclusive of an interim dividend of 15 percent already paid. The new entity will have an order-book of about 14 million square feet (msf) for the construction business. Chairman and Managing Director. DNA.8 crore in the previous fiscal. 2010. Unitech Infra has valued itself at about Rs 5. Unitech spokesperson was not immediately available to comment.000 sq. In the fourth quarter net profit rose to Rs 47. 2010. 9 June.3 msf in fiscal 2010 to 35 msf by 2013 and to 50 msf by 2015. It plans to award most of the construction projects to Unitech Infra. and a one-time special dividend of Rs 1.86 crore from Rs 9. Praful N. generating 300. The company is also expecting the area under management for the facilities and property management services to increase from 10. Its total income rose to Rs 250 crore in FY10 against Rs 131 crore the previous year. The company announced a dividend of 35 percent. Ltd is buying three plots on south Mumbai‟s posh Napean Sea Road for about Rs350 crore for its first block redevelopment project in the tony neighbourhood. The Economic Times.

said. Mumbai and Chennai. 2010.5 by 2011-end through debt retirement. The realtor has a mandatory debt repayment of Rs 2.700 crore through non-core asset sales and healthy cash flows. Less-than-expected divestment of non-core assets resulted in lower repayment of debt in fiscal 2010. analyst with Crisil.549 crore. DLF spokesperson was not immediately available to comment on the developments.600 crore in 2011. residential agency. for Rs 800 crore and Tidco in Tamil Nadu for Rs 900 crore. in a note to clients. Live Mint. The Singapore listing of its subsidiary DAL would materialise once the substantial portion of the portfolio is leased out which currently is at 6 msf out of the total 13 msf. mid-income and affordable housing and would be primarily launched in the national capital region. but actual transactions have not picked up at the same pace.76 msf last year and is looking to lease out at least 1 msf per quarter.000 crore outstanding debt in 2010 by cash flows and asset sales.600 crore in 2011. It repaid about Rs 5. The New Delhi-based company seeks to bring its debt equity ratio to 0.500 crore in the fiscal 2010.000 per sq. Enquiries are coming in from sectors such as BFSI.5 msf of the 4. “DLF had planned to divest its non-core assets and use the cash to lower its debt. KPOs and BPOs. DLF had decided to raise Rs 5. This led to higher-than-expected interest costs.7 crore. The developer is also looking at sales booking of 1518 million square feet (msf) this fiscal as against 12. Delhi. “Though there is a potential problem of supply overhang of luxury projects in central Mumbai areas such as Lower Parel. The company expected divestments to generate cash of Rs 5. Knight Frank India.000-60. the company was able to monetise only Rs 1.500 cr Targets sales booking of 18 msf this fiscal over 12. However. there is huge demand for such high-end residential developments in south Mumbai because supply is restricted. 10 June.600 crore last year against mandatory repayment of Rs 3. It recently sold 2 msf in Chandigarh.000 luxury apartments will be sold within a year in Mumbai. ft. 10 June. Orbit is in the final lap of raising Rs 350 crore from a private equity fund for the project.800 crore. as it looks to raise Rs 2. the largest real estate developer in the country by market capitalisation.6 msf last fiscal. It will launch about 1-1. is looking to end the year with operating cash surplus of Rs 2. The realtor leased 0.Public Markets saleable area to be priced at Rs 50.500 crore last fiscal via sale of non-core assets. . It will raise funds from land sale at Dwarka. Chetan Majithia. New Delhi DLF presages operating surplus of Rs 2. The Mumbai-centric developer.” said Anand Narayanan.8 gross debt-equity ratio. Another 400 units in the Rs1 crore-plus bracket are expected to come up in Bangalore. known for its upscale residential projects.700 crore and over .6 msf in fiscal 2010 DLF Ltd. national director. It earned rentals of Rs 750 crore last year and is looking at rentals of Rs 1. DNA. IT. is also acquiring the palatial Kilachand bungalow in the same area to redevelop it into a luxury residence. The residential launches would be a mix of luxury. PTI reported in April. It currently has gross debt of Rs 21.” DLF is also looking to retire over Rs 5. a property advisory.800 crore during the year.5 msf luxury project at NTC mill in Mumbai around September. Pune and Gurgaon. 2010. but was able to raise only Rs 1. Consultancy firms Jones Lang LaSalle Meghraj and Knight Frank India have estimated that around 7. but necessary approvals are still awaited. Chennai. The company is also seeing increased commercial leasing enquiries in Hyderabad. with each unit priced at more than Rs4.500 crore.

The Mumbai-based firm recently bought a 6. requesting transfer of the land to Mhada for construction of affordable houses. 10 June. we are unable to meet the demand and builders are taking advantage of the situation. A day after the NTC published an advertisement for sale of land in Worli. We plan to construct flats for mill workers. “We have made some right calls and are lucky to have good people. it was well within the powers of Mhada to procure land from the open market. it will be appropriate for NTC to transfer the land to Mhada at the reserved price. Lodha for Rs 180 crore and Kohinoor for Rs 421 crore. stay the bidding process and consider the proposal to transfer the land of Bharat textile mills at the reserved price to Mhada. which has an FSI (floor space index) of about 55-lakh sq. 7 June. Lodha is to announce plans for what it calls the world‟s tallest residential tower. we need 25 lakh flats in Maharashtra. NTC has auctioned its prime lands in Mumbai to leading developers—DLF for Rs 702 crore.‟‟ a senior official said.5 crore per flat. beating companies such as Indiabulls Real Estate Ltd and Reliance Infrastructure Ltd. Kindly. we will be able to regulate real estate prices in the area. 2010. then the Mhada will be able to construct well over 5. Due to non-availability of land. So far.” said the company‟s 30-year-old managing director in an interview. we feel it is a very attractive proposition to have such a large.000 sq. 2010. This particular location is getting great connectivity—both the headquarters of the monorail and the metro rail are coming here plus the new Eastern Seaboard Express (Highway) from Prince Charles Museum. Mumbai . lower. The official made it clear that as per the Mhada Act. middle and higher income groups.053 crore. ft is by far the largest development in Mumbai.‟‟ he said. Next week. all the way to Chembur. Times of India. Given the supply demand economics in Mumbai. chief minister Ashok Chavan has knocked on the doors of Union textiles minister Dayanidhi Maran. As a result. “We propose to develop it as a special project. catering to a target audience who can pay Rs1-2. m) plot in Wadala in central Mumbai for Rs 4.‟‟ Chavan said in a letter to Maran. If we succeed. CM wants NTC plot for Mhada Urges Centre To Give 8-Acre Plot For Low-Cost Hsg Project “As on January 1.000 flats on the NTC land. How do you justify the price you paid? The latest land sale by the MMRDA (Mumbai Metropolitan Region Development Authority) in Wadala. 2010. “We will pay the reserved price of Rs 750 crore to the NTC.‟‟ he said. If Chavan succeeds. Live Mint. clean piece of land available in the city. It was felt that Mhada should procure the NTC land to meet the demand for affordable houses.1 acre (25. passes through this side. “We felt that since NTC is owned by the Centre and Mhada is controlled by the state government. while Mumbai needs 13 lakh flats. we will get an FSI of 4. ft and a total developable area of 80 lakh sq. Mumbai Days the National Textiles Corporation (NTC) announced its decision to auction a prime piece of land in central Mumbai. Edited excerpts: Let‟s start with the deal that everyone‟s talking about. Chatterjee submitted a comprehensive proposal to NTC chairman and managing director K Ramchandra Pillai.Land LODHA EXPECTS WINDFALL FROM WADALA PLOT Abhisheck Lodha joined family-run real estate company Lodha Developers Ltd in 2003 after a stint with McKinsey and Co. housing secretary Sitaram Kunte and Mhada managing director Gautam Chatterjee swung into action.

400 crore from its Worli project. However. The company is in talks with a venture fund that also has realty parcels and a few local developers for the same. Its present realisation is Rs 50. sources close to the development said. It also plans to come up with township projects in Indore and Mysore. which it expects to complete by the end of 2012. starting with areas where it has inherent strengths. The deal is expected to be closed before the month end. Hyderabad & Ghaziabad.5 lakh square feet in Shree Ram Mills in Worli (central Mumbai) for Rs 2. Now the company can build an additional 30 flats at the project. It is targeting Bangalore. SRUI plans to acquire land banks to develop highend properties. The project was earlier projected to have 88 flats.65 crore as booking amount.8 lakh sft. SRUI has already booked 51 and has received Rs 231. the Vikas Kasliwal-run real estate company. However. 10 June. Lower Parel.” said the source who did not wish to be identified. taking the total to 120.Land Shree Ram to sell part of mill land for Rs 2.475-2. in the Mills land. DNA.500 crore. Of the proposed 88 flats. Hyderabad & Ghaziabad Shree Ram Urban Infrastructure (SRUI). “Though the exact size of the land parcel that will be hived off is not available. the company will have to sort out a dispute over a part of the Mill land with the Kalpataru group. Mumbai . which would have a saleable area of 8. before the sale. is set to sell a part of its 26.” the source added. it recently received approval from for a FSI (floor space index) of 4 from the Brihanmumbai Municipal Corporation. 2010. The companys market capitalisation is Rs 400 crore at present. The company expects to register a profit after tax of Rs 2.500 crore Also looking to acquire land parcels in Bangalore. Palais Royal. Repeated attempts to contact the company officials failed. it is estimated to be about 5 lakh sft and would fetch Rs 4500-5000 per sft. “SRUI is developing a luxury residential project. The Palais Royale was slated to be the tallest tower in Mumbais skyline before the Lodha group announced plans to build Mumbais tallest tower in Wadala and worlds tallest tower at Shrinivas Mills.000 per sft.

shipping and logistics owns two apartments above the 65th floor of Burj Khalifa. highlighted. The Rs 15-crore project.000 litres per day. The architectural team will collaborate with structural engineering firm LERA. “The Royal Heritage project is being developed on 1. close to the site of the proposed All India Institute of Medical Sciences (AIIMS) on the outskirts of the city.” said a source close to the development. The project will take 4. Royal Tower and Royal Heights in the city.” The company. the company responsible for the twin Petronas Towers in Malaysia. which has the distinction of developing projects like Royal Garden. is expected to be operational by December 2011. has already invested Rs four crore on the Royal Heritage project. a city-based real estate player. managing director. the tallest residential-cum-mixed-use tower in the world. The base price of an apartment in Lodha World Place is expected to be Rs8 crore. “All three leaves will rise up to 45 floors. the top penthouse in Burj Khalifa is also owned by another Indian. three-BHK and four-BHK flats. The address on it was. who have designed iconic buildings like the The John Hancock Tower in Boston. Lodha has roped in Samsung Engineering and Construction for construction work. Incidentally. 8 June.000 crore DNA.5 years to complete. . inevitably. The project requires funding of close to Rs1. is giving such connoisseurs of the skies a desi option bang in the middle of the metropolis. 2010.Residential Worlds tallest residences will be in Lower Parel Lodha launching project on 17. while villas in the sky are expected to cost up over Rs40 crore.5 acres in Shrinivas Mills compound A Dubai-based Gujarati-Jain business family with interests in real estate. The towers have been designed like a petal with three leaves protruding outside. The main tower will have 117 floors and 350 flats. two of them will go up to 81 floors. Now. While the built-up area of a single BHK flat would be 650 sq ft the carpet area for Lodha has hired New York-based architects Pei Cobb Freed and Partners. Burj Khalifas water supply system pumps up an average of 946. which is to be developed at Patrapada.3 lakh sq ft. the Mumbai-based developer. two-BHK. currently at 828 metres.5 acres in the defunct Shrinivas Mills compound at Lower Parel. Lodha group. the Louvre Pyramid in Paris and the Waverock. only one will reach the 117th floor. The company is still awaiting some permissions. Construction work has already taken off and the project is set to be commissioned by December 2011. Lodha had bought the plot in 2005 after a court case on compensation to the mill workers was settled. Mumbai Sj Developers plan Rs 15-cr Royal Heritage project Sj Developers & Housing Limited. Sj Developers & Housing Limited said. It will be interesting to note how the builder can arrange for the massive water supply that will be needed.3 cares of land and it will have a total built-up area of 1. A family member graciously proffered his visiting card when the correspondent was visiting in January. The Royal Heritage would consist of 70 flats in all in eight storeys and it would offer a mix of one BHK (bedroom hall kitchen). an integrated township in Tellapur in Hyderabad in 2008. It is launching the worlds tallest residential tower on 17. once the worlds tallest. has announced its latest residential project called 'Royal Heritage'. Debidutta Mishra.

The State Expert Appraisal Committee (SEAC).” Although he declined to disclose details of the PE investments. Sj brings with itself more than seven years of experience in the realty sector in the state.3 times the net plot area. waste generation. “With our emphasis on customer requirement. saying they need to reduce the proposed construction area. a recreation room. Bookings for these flats have already begun and so far 37 flats have been booked.000 crore. has also objected to development proposals by Indiabulls and DB Realty in central Mumbai. population density — in overcrowded areas in the island city. An advisory body set up by the Centre to scrutinise construction and infrastructure projects in the state. “Unless these are significantly reduced. a separate and secured play area. Mishra claimed. It has asked the groups to revise their plans. 9 June. has objected to the plan and asked the developer to revise the proposal. Hindustan Times. 2010. sources familiar with the matter said Lodha have initiated discussions with leading Singapore funds GIC and Temasek. The Royal Heritage would offer to its occupants a fully equipped gymnasium. purported to be Mumbai‟s tallest residential building. 2010. we have an advantage to judge the mindset of the customers and their basic needs”.000 crore to develop the world‟s tallest residential tower in Mumbai to cash in on the continued surge in home prices in India‟s commercial capital. “We are also looking at some private equity investments for the project. Hindustan Times. Berhampur and Puri and the company is the process of creating land banks in these locations. an environment body comprising independent experts and former bureaucrats. 2010. the project has hit a hurdle.” managing director Abhisheck Lodha told a press conference.Residential two-four BHK flats would range from 1300-3000 sq ft. which has raised questions over the Lodha Group‟s. Being a local player. we are working more to develop sustainable infrastructure. to raise over Rs 1. “We will fund the project through internal accruals and pre-launch sales. and raised concerns over strain on infrastructure — water supply. landscaping. The flats are priced at Rs 2500 per sq ft. Lodha to invest Rs 2kcr in 117storey project REAL estate firm Lodha Developers will invest Rs 2. said Mishra. plans to build a 117-storey tower in Lower Parel. the SEAC criticised the Lodha Group and two other developers — IndiaBulls and DB Group — in its meeting on May 24-26. Kolkata Lodha‟s construction area is more than 13. As the developers of this project. Mumbai 117-STOREY CITY PROJECT HITS ECO ROADBLOCK Even as the Lodha Group announced the construction of a 117-storey tower in Lower Parel on Tuesday. . Business Standard. 9 June. the environment body. TELLS BUILDERS ECO PANEL The State Expert Appraisal Committee (SEAC). saying their projects sought “unacceptably high” construction area. Sj Developers is planning to launch real estate projects in other towns of the state like Angul. a large banquet hall and a library. clubs and facility management in all our projects.” it was noted in the minutes of the meeting. it would not be possible to consider the proposal. and a property fund of mortgage giant HDFC. 8 June. Mumbai AMEND PLANS.

the company bagged a 22. the tower will be higher than some of the iconic global landmarks including Sears Tower in Chicago. too soon? Vakil‟s words clearly reflect the movement in Mumbai. they launch projects there. Christened as World One. when fully completed over multiple phases. which the Lodhas bought nearly five years ago. whose height is 323 metre. in the first phase. dwarfing the tallest building Queensland Number One in Australia.000 apartment units.5 crore. a former textile hub in central Mumbai. which deferred its initial share sale last year.000 crore from the project. Flats will carry a minimum price tag of Rs 7. handed over the first set of residential apartments last week. It will house three and four BHKs. and John Hancock Tower in Boston.Residential Lodha Developers will start bookings by end of this month and expects to complete the project by 2014. The company has hired the services of New York-based architect Pei Cobb Freed and Partners. “ said Mr Lodha. chairman of Knight Frank.‟‟ says Pranay Vakil. couple of years ago during the realty boom at Oragadam near Chennai. according to Religare Capital Markets. “We can assure you that the building will have all the necessary safety measures in case of an emergency. The company will also construct a two-acre government car park in the adjacent area. Prices of high-end properties in South . “ said Mr Lodha. Financial Chronicle. Palace Gardens. Lodha can now ask for higher valuations due to its ownership on two iconic buildings. six towers of 27 floors. 9 June. analysts and property consultants see oversupply of premium houses looming large on the island city‟s skyline. partner at Pei Cobb and Freed told ET. will help it to get additional FSI for the residential project.5-acre property in Mumbai after bidding Rs 4. it took up the development of only 928 apartments for construction across two towers of 15 floors.000 ft.050 crore in the country‟s biggest land deal. Once completed. 10 June. The tower will come up on the 17-acre plot of the defunct Shrinivas Mill in Lower Parel. including Louvre Pyramid in Paris. which launched a large residential township project. the demand may not be there. the 117-story tower will stand close to half-a-km tall. Bank of China Tower in Hong Kong. which has completed nearly 200 architectural marvels across the globe. 2010. will launch an IPO once the market is stabilised. lavish villas with private pools and some super-luxurious duplex flats. The Economic Times. Whenever developers see demand in one area. and 11 low-rise buildings (ground plus three floors). but we are looking at providing our customers a great experience to live in. Too much. It will also have an observatory at a height of 1. which. into a super-luxury residential address for the country‟s ultra-rich. Last month. Mumbai HIRCO HANDS OVER FLATS AT PALACE GARDENS Hirco Developments. Palace Gardens is among Chennai‟s largest township projects and will have 10. Jin Mao Building in Shanghai and Empire State Building in New Work. “We expect to roll out 300 residential apartments and notch sales of about Rs 5. central Mumbai. a property consultant. Lower Parel is expected to see over 10 million sq ft of residential supply in the next three to four years. Oversupply in Mumbai housing looms large luxury Property developers are dreaming of making Lower Parel. 2010. However. However. real estate experts said. including a 80. said owner of a real estate company who did not wish to be named. said Mr Lodha.000 square feet sports club at a height of 175 feet above ground. The company. In all. It will have over 5 acres of landscape area.” Jay Berman. But when the projects get completed. “It is not about the tallest tower.

Adds Raminder Grover. The entire project is expected to have around 1.000 new luxury apartments are expected to be available in the city in within a year.000 apartments in a price range of Rs 5-10 crore.5 million sq ft. which has almost sold off its Bellissimo project in the Mahalaxmi area of Mumbai. I feel there is sufficient supply in this area to meet the demand.000 per sq ft.7 crore each. With prices only millionaires can afford—Rs 7. given the cost of land and construction.‟‟ said Religare analysts in a report. Just a few yards away. with am 80.‟‟ Developers unfazed Developers.Residential Mumbai went down 50-60 per cent during the slowdown of 2008-09. While Lodha did selective marketing of its World One project among its old customers at Rs 25. On Tuesday. Demand will not sustain unless the whole supply is spread out over the five years. 11 June.000 sq ft of landscape area for the residents. believe there is enough room for their projects. Business Standard. for over Rs 4. The tower will have 276 apartments and a built-up area of 1. senior vice-president of the Lodha group. on the defunct Shreeniwas Mills plot in Lower Parel.5-50 crore—the project is expected to have over 200.‟‟ says Vinod Goenka. “I feel there is a limited demand for high-value apartments of Rs 5 crore. Goenka believes prices in the area will not go below Rs 20. “There will be demand for projects in these areas as no major supply is coming up in other parts of Mumbai. chairman of DB Realty. According to estimates. is planning to launch Mumbai‟s largest luxury residential project with a built-up area of 4. the country‟s largest developer. DLF. “There may be some moments of oversupply but there is a depth in the market. however. World One.000 a sq ft. the Lodha group announced a 117storied residential tower. chief executive of Homebay Residential.‟‟ Vakil adds.00020. DLF is also expected to sell the apartments in the similar price range.‟‟ says R Karthik. “We believe new launches from DLF. 2010. which is developing premium residential buildings in nearby localities. touted as the world‟s tallest residential tower. about 7.000-sq-ft sports club at 175 ft above the ground. a property consultant: “Developers need to be realistic. Good products definitely sell in the market.000 per sq ft) to bring absorption in Lower Parel. Lodha and Raheja have to be at a decent price (Rs 15. Mumbai .2 million sq ft. where it is building three towers of 90 floors each. Many say pricing will be the key in selling such apartments.

Most malls were conceptualised on very little homework or research about the future catchment dynamics or financial feasibility for a retailer. Malls were planned either because there was already a popular mall in the vicinity (so the footfalls were already there) or just because there was a property available to the developer (without considering the accessibility and relevant catchment). So what will make the mall business viable and more successful? The key is to accept that any longer term success comes only from long term planning and short terms gains are always shortlived. almost 3040 percent of shopping malls are lying half-filled and others have to rework lease agreements or work on just revenue share. Three-four years ago. . 7 June.Commercial/ Retail TIME FOR MALLS LONG-TERM TO THINK While the shopping mall phenomenon is fairly new in India. Now. almost every developer was able to sell mall space to investors or signed leases with retailers even before starting construction. 2010. the industry has already seen its ups and downs in a very short span of time. Hindustan Times.

of which five qualified for the final bidding process.” the official noted. Mantri Housing. Shristi and DLF. “Considering the real estate slowdown last year. 2010.” he added. we are happy with the response the companies have evinced in developing townships.000 crore. Gautam Buddha Nagar and Kanpur. The townships would be developed outside the jurisdiction of the local municipalities and development authorities. Earlier. including Eldeco. The minimum land area and investment criteria for each township is 1. Business Standard. the state government had amended its New Township Policy on suggestions of the private parties during pre-bid meetings and conferences.000 crore in this round. respectively. The companies have bid for developing townships in Lucknow. The deadline for filing Request for Proposal (RfP) was extended last month on the request of prospective bidders. New Delhi . as it would entail investment of almost Rs 3 crore to develop an acre of land.” a senior housing and urban planning department official told Business Standard.000 acres and Rs 1. 7 June. Awas Bandhu under the state housing department is the lead agency. “Seven companies had submitted their technical bids. The aim is to promote and facilitate private investment in developing new townships with modern amenities in all the 71 districts. are in fray after qualifying the Request for Proposal (RfQ) round in January. Ghaziabad. Feedback Ventures is the consultant for these modern townships proposed to be developed all over UP.Township BIDS FOR UP TOWNSHIPS TO OPEN ON JUNE 10 The financial bids for the townships proposed to be developed by private developers and consortiums in Uttar Pradesh will open on June 10. Five companies. The flow of investment is likely to be over Rs 10. “The private parties have bid for these towns on basis of their due diligence and demand analysis. Supertech.

set on 369 acres. ft. which are all chock-a-block with group housing projects. Business Standard.5 million sq ft of commercial space. 3. HIRCO COMPLETES PHASE OF TOWNSHIP FIRST Hirco Developments. Addressing presspersons here V. and ample parking space. The project is located adjacent to Sectors 76.” the chief minister said. chief minister K Rosaiah said creation of physical infrastructure of international standards was a prerequisite for the ICT industry to set up shop and operate in a most optimal manner. MD of Gardenia Group. The other significant feature of Golf City is its connectivity. Maxblis and AIMS are proudly showcasing it as one of the few integrated townships in the whole of Noida. the project management company. It is also only about 2km from Noida‟s City Centre Metro station. 3 June. Suresh. The flat sizes will be in the range of 950 sq ft to 2. six towers of 27 floors and 11 low rise buildings. ft. from institutional to entertainment facilities — not to speak of a 50-acre green belt with parks. promises customers an eco-friendly ambience with all the amenities of an advanced urban township. daily-utility shops and office space. Just across the fully developed Sector 50. “Andhra Pradesh has got the highest number of 57 IT special economic zones (SEZs). water bodies and various kinds of flower gardens — it is a self-sufficient township where residents need not step out of the complex for any of their domestic or social needs. 2.4 million sq. the proposed Metro line from Sector 32 to Sector 82 will pass by the township. ranged from Rs.” Sanjeev Sharma. New Delhi Eco-friendly Township Golf City. The two projects combined will have 66.400 to Rs.ft. a project that has been notified as “Eco-friendly Township by the Noida authority in the tender bid”. the township will encompass housing for the affordable segment on one end and premium segment on the other. 2010. Hyderabad .950 sq with a basic selling price of Rs 3. as against the total number of 351 IT SEZs approved by the Centre in the country. The whole project is going to be raised on a 150acre plot and has 2. The residential area will have 20 million sq ft of built-up area with flats and duplex villas.200/sq ft (plus charges). The consortium comprising Gardenia Group.ft. commercial. The Hindu. and that is our USP. in the Mumbai Metropolitan region. said the township. The project is very close to the proposed FNG Expressway and lies on a 75m-wide road connecting to Greater Noida. he said. The commercial space includes retail. 2010. The prices per sq. the company had already sold 2. When all the SEZs are fully operational in the next three years. Hirco. As part of the first phase. these will create more than 100 million sft of office space and about 1 million direct employment in the IT sector. which is spread over 15 acre. retail and social space.000 apartment units with the accompanying physical and social infrastructure. 928 apartments were under construction across two towers of 15 floors. of buildable area of residential.600. says. “Golf City is an integrated township. From commercial space to residential space. Suresh said that out of 2.14 million sq. Principal Executive Officer. a project by a consortium of three developers. would have 10. in the Chennai township. Thus. announced on Wednesday that the first group of flats in its Hiranandani Palace Gardens Township coming up in the suburban area of Chennai at Vadakkapattu village near Singaperumal Koil would be delivered soon. Ravi Kumar Mangalam writes Aconsortium of three builders is coming up with “Golf City” in Noida‟s Sector 75. 77 and 78.Township Inaugurating the Phase-I of Waverock. Hirco is also developing another master planned township „Palace Gardens' set on 583 acres in Panvel. 2 June.9 million sq.

The boulevard is surrounded by residential flat towers. Stanford Group.” Sharma says. while the master bedroom will have laminated wooden flooring. and bedrooms. Apart from this central musical fountain. AIMS Krishna Dham on Mera Road. a villa project. the most enchanting feature of the township is the central boulevard with a musical fountain where residents can relax in the evening. This is a feature in European townships. Mumbai are projects executed outside. 2010. The Times of India. 5 June. Provision has been made for modular kitchens. the interior walls would have designer-concept paint with a combination of texture and rich oilbound distemper. “We will have primary schools. we have put emphasis on having a lot of open space for residents of Golf City. with granite-top working platform and stainless steel sinks. and a hotel among the institutions in the township. We are also providing an incampus practice golf course.Township Citing the other USPs of the integrated township. Sharma says: “Unlike gated communities and group housing projects. there will be other musical fountains and gushing waterfalls. as well as the recent Dubaibased real estate residential developments. There are 9. We are in talks with a US-based entity. a football field and volleyball courts. Other projects of the consortium include Glory in Noida‟s Sector 46 (to be handed over in Q4 of 2012) and Grace in Sector 61 (to be handed over in mid2011). kitchen. along with independent villas. whose ground floors will have shopping centres [apart from the retail space already earmarked in the designated areas of the project‟s plan] for the ease of residents. Apart from those in the NCR. which has been completed and handed over in Vasundhara. Toilets would be fitted out with ceramic tiles up to 7ft high. phase wise. Delhi The whole project will be built using earthquakeresistant RCC material and the layout plan is vaastu-compliant. The whole project will be handed over to customers.000 . squash courts. Perhaps. Gardenia Group‟s earlier projects include Gardenia Green. Mumbai and AIMS Tower in Basai. There is also a 2-lakh sq ft club with world-class amenities. Both the projects have been sold out. The prospectus of the townships lists in its specifications vitrified tiles to be fitted out in drawing room. Gardenia Group is also one of the promoters of Crossings Republik township. a hospital. Modular electrical fittings have been provided for in all the rooms. To give an artistic finish. which has been completed and sold out. the kitchen would also be embellished with designer ceramic tiles up to 2ft above the granite-top working platform. a cricket ground. Toilets and balconies will have ceramic tiles. an Olympic-size swimming pool. The project will be executed in three phases and two phases have already been sold out. within the next three years.” flats on offer in the township with each tower being 15-floor high. The campus has an integrated sports complex with 12 tennis courts. dining room. for building the hospital in Golf City. Sector 18 and Le Gardenia Goa in Goa.

tomorrow. Naturally.SEZ GOVT TO TAKE UP 6 FRESH SEZ PROPOSALS TOMORROW The government will take up six fresh requests for setting up special economic zones (SEZs). The board will also take up the request of real estate major DLF for re-notification of its SEZ in Kolkata. there is no specific provision for transfer of a unit from one SEZ to another. and Larsen & Toubro's IT SEZ at Mysore. an official said.” He said many are now holding back their investments in SEZs due to the uncertainty created by the DTC. 8 June. As of now. Singhal. the Commerce Ministry has said the Finance Ministry is yet to consult it on the continuity of fiscal sops in the DTC to these taxfree zones. 2010. Karnataka. 2010. “If there is no income tax exemption. 9 June. DirectorGeneral. which have emerged as major sources of exports. New Delhi NO CLARITY YET ON SOPS TO SEZS IN DIRECT TAXES CODE Even as Larsen and Toubro withdrew its proposal for an IT/ITeS Special Economic Zone (SEZ) citing uncertainty in tax treatment towards SEZs in the Direct Taxes Code (DTC).B. The Hindu Business Line. no entrepreneur will set up a unit in SEZs. The inter-ministerial Board of Approval (BoA) on SEZs headed by Commerce Secretary Rahul Khullar will also consider framing rules that will allow migration of units from one zone to another. Export Promotion Council for EOUs and SEZs (EPCES). The Economic Times. The Board of Approval (BoA) for SEZs on Tuesday approved the withdrawal of formal approval to L&T's IT/ITeS SEZ in Mumbai. no developer would want to develop SEZs in such a situation. New Delhi . Madhya Pradesh. Dr L. said. The new SEZ proposals include Hindalco Industries Ltd's proposed aluminium sector SEZ at Bargwan.

Hospitality No News on this topic in the current Week .

Input Cost No News on this topic in the current Week .

The information set out herein may be subject to updating. the accuracy and completeness of all information available from public sources or which was provided to us or which was otherwise reviewed by us. ASK Property Investment Advisors does not accept any responsibility for any errors whether caused by negligence or otherwise or for any loss or damage incurred by anyone in reliance on anything set out in this document. This document is being communicated to you on a confidential basis and does not carry any right of publication or disclosure to any third party. securities or investment advice. verification and amendment and such information may change materially. all of which are subject to change. who the recipient agrees has the benefit of this undertaking. The use of any information set out in this document is entirely at the recipient's own risk. In preparing this document we have relied upon and assumed. completion. invitation or solicitation of any kind to buy or sell any security and is not intended to create any rights or obligations. or a solicitation for any product or service. ASK Property Investment Advisors does not vouch for the accuracy of the information and is not responsible for decisions that may be taken on the basis of the information. The information in this document reflects prevailing conditions and our views as of this date. Past performance cannot be a guide to future performance. without independent verification. The recipient and its professional advisers will keep permanently confidential information contained herein and not already in the public domain. . No reliance may be placed for any purpose whatsoever on the information contained in this document or on its completeness. Nothing in this document is intended to constitute legal.Disclaimer The information carried by the articles in this newsletter has been gathered from various reports published in newspapers and magazines. This document is being communicated to you solely for the purposes of providing our views on current market trends. tax. By accepting delivery of this document each recipient undertakes not to reproduce or distribute this presentation in whole or in part. or opinion regarding the appropriateness of any investment. revision. ASK Property Investment Advisors has reproduced the articles and reports verbatim. nor to disclose any of its contents (except to its professional advisers) without the prior written consent of ASK Property Investment Advisors. This document is not an offer.

Sign up to vote on this title
UsefulNot useful