Real estate prices are likely to remain stable at current levels, a top official of real estate major DLF Limited said. "I don't see any price bubble in real estate and expect prices to remain steady at current levels," DLF vice-chairman Rajiv Singh told reporters on the sidelines of a press conference in Mumbai.

However, there could be some upward or downward movement depending upon land location, he said. Company officials pointed to the "strength" in the market and maintained that "there is no lull in demand."

DLF's business is heavily dependent on the performance of the real estate sector, particularly in the regions in which it operates. However, given that prices in the NCR region and the metros where its main land bank exists are holding stable, company officials said "there is no cause for worry."

The list of world’s fastest growing office rental markets in the year to May now has New Delhi as the latest addition. Others are Abu Dhabi in the United Arab Emirates leading the chart followed by Sofia in Bulgaria, says the data showcased by CB Richard Ellis.

Abu Dhabi witnessed to be the world’s most expensive commercial location, where rents doubled during the concerned period. London and Tokyo, however, still secure their positions as the world’s most expensive office locations, headed London’s West End where occupiers need to pay an average of $241 per square foot for a good commercial space.

Also, the London Districts remain on top of the European rental league. Commercial Property Rentals in London’s West End were turned out to be double of the value paid in Moscow, Paris and Dublin - Europe’s most expensive office markets outside London, adds the data.

Sofia was termed as the fastest growing market, with a 63% appreciation in rentals, as economic expansion in the European Union newcomer attracts several multinational companies and offers a conducive environment for the growth of domestic business.

Nagpur Real Estate on the focus

Posted by Jack Macferson | 1:11 AM | | 0 comments »

Nagpur Real Estate is in news due to the investments by NRis here. More and more NRI's investing in Indian tier II cities. The intense demand for residential and commercial properties coupled with the high buying power of NRI’s is pushing up prices beyond a reasonable limit in Nagpur. Property developers in the city are making hard cash in the wake of number of real estate deals that are waiting to be struck soon.

Encouraged by the booming market, several developers and brokers are also in a look out for tapping a large base of NRIs, who have their roots in the city or region. Thousand of deals struck each day. Of all, the main ones are for vast stretches of agriculture and non-developed agriculture land. Most of NRI property buyers originally belong to Nagpur, but others are also keen to get a chunk of land in the city.

NRI investments in Nagpur are expected to push major developments soon. The current growth is already contributing to the price rise. Many real estate brokers and agents make trips abroad to hold marketing fairs to attract attentions from NRI investors the US, UK, and Middle East.

Indian Realty in 2015 = $ 90 Billion

Posted by Jack Macferson | 9:17 PM | | 1 comments »

It is already forecasted that Indian Real Estate Industry will grow to a massive amount of $90 billion in the next eight years. This was forecasted by the Financial Management and advisory company Merill-Lynch. The Real Estate Industry is quite happy by the figures but at the same time RBI has raised concern over the matter.It reasons that the portfolio inflows should confirm to the norms applicable to foreign direct investment (FDI) in the sector. Analysts feel that the central bank should revisit the FDI norms rather than curbing the portfolio inflows.

Analysts feel that with the growing economy infrastructure should also be developed. Real Estate industry is the second biggest job creators in India. Also Real Estate is connected to further 250 industries like Cement, Brick, etc, so a growth in this industry will also effect the others. So directly or indirectly Real Estate can effect the Indian GDP.

Real Estate FDI which is at 16 % in the end of 2006 is estimated to grow to 26% by the end of 2007.

Al Fajer Properties, one of the reknowned developers of Dubai said it is in talks with two unidentified Indian developers to form a joint venture for an investment of up to $1 billion (Rs4,100 crore) in Indian real estate. Many developers from UAE are intersted in joint ventures with Indian developers in Indian Real Estate. After US now the prominent developers of UAE and Singapore are showing considerable interest towards Indian Realty Sector.

Al Fazer said it has plans to develop commercial projects, gated residential communities and townships and has been considering locations in Gurgaon, Hyderabad, Gujarat, Mumbai and Chandigarh. It also wants to create a fund for small investors in India to invest in Dubai properties. This is something every indian realtor will be looking forward.

Al Fajer is one of a growing number of Dubai companies showing interest in Indian real estate. It is moving into India despite signs that the real-estate market is softening. Though there is a sort of saturation in the Tier 1 cities but the good news for indian real estate is that Tier II cities started growing with the IT Sector and the industrial sector investing in such places.

“We have been monitoring the Indian real estate and investment scenario for over two years now,” Shahram Abdullah Zadeh, Al Fajer Properties’ chief executive officer, said in an email. “Despite the current fluctuations in the real estate and property prices, our decision to enter this growth market is driven by our confidence in the strong economic fundamentals of India.”

The company did not offer any additional details including funding. Al Fajer currently has a portfolio of more than $1.5 billion worth of projects in Dubai.