Claimed to be a first of its kind concept in India, Galaxy Hotel plans to build a hospitality-cum-retail structure with an investment of about Rs 750 crore in India. The new hotel group recently opened its first property in Gurgaon.

In its short term plan, the company plans to add at least five more properties in different locations in India. Shashank Pundir, the hotel's general manager, said, "Galaxy Hotel Shopping Spa is how we refer our brand as, which is unique and will be promoted as a lifestyle business concept. The plan is to invest around Rs 750 crore apart from land costs, which we are going to raise through equity and debt. We are planning to take the concept to five more cosmopolitan destinations in India."

The concept revolves around the new lifestyle of high-end shopping and Galaxy wants to offer this experience within the same complex that will include a spa and a health club. The Total Integrated Design (India) has done its interiors. The managing director of TID India, Ritu Bhatia Kler, said, "The concept is more about bringing a hip design that brings lifestyle brands closer to guests. The retail segment in India is doing well and has potential to become a hospitality trend."

The first hotel by the company in Gurgaon has 80 rooms. "The smallest and biggest room in our property measures 370 sq ft and 750 sq ft, respectively and offers a spa room, suite and deluxe room, which is very unconventional," remarked Pundir. The company is also developing its own spa brand - Spa Soul - which will be a regular feature in all its properties. The first one will be operational in Galaxy Gurgaon by September this year. Pundir hinted at Bangalore as the next possible destination for Galaxy's brand presence. "We have outlined an advertising and promotion budget of Rs 5-7 crore," he revealed.

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.

With Bangalore making rapid strides in IT/ITES sector, the office space absorption here has reached a new high of 14.2 million sq ft, which is believed to be the second highest in the world after Tokyo.

This is accountable for 53% growth over the past years. The office space absorption figure is known to stand at 9.28 million sq.ft thereby carving out a niche among the top four cities globally. With IT/ITes majors being bullish to set establishments in Bangalore, the city is likely to figure in the top cities globally in office space absorption in 2007, says the data showcased DTZ Debenham Tie Leung, an international real estate consultancy firm.

Bangalore’s CBD is fetching Rs 65 per sq ft per month, with a further rise to come up soon in very near future in the wake of new supply. The vacancy level in CBD is just 0.5% against 7% - 8% of other peripheral locations in the city. It is likely to remain unchanged due to the huge pipeline supply.

Indeed, NCR could not make it to win the race. The Capital has seen an overall absorption of 10.6 million sq ft of commercial Grade A office space in 2006, says the survey. Rentals in the city will continue to rise due to the MCD sealing of illegal commercial spaces. Another reason can be the steady demand by the upcoming companies in NCR.

According to the survey, the total office space absorption in Mumbai was estimated to be 6.4 million sq. ft. the demand for commercial spaces in Mumbai may continue to by expanding IT/ ITes, insurance and telecom sectors. The rentals in the most sought after locations in Mumbai such as Bandra, Worli, Lower Parel are almost 100-200% higher than the rentals in 2006. As such, the rentals in financial capital have not jumped very high.

Rentals across these cities have more or less remained stable and have not shown significant appreciation, said the report.

The office absorption in Chennai in the last quarter of 2006 stood at 5.2 million sq. ft., whereas the total absorption in other upcoming cities including Pune and Hyderabad stands at 4.6 million sq ft and 3.8 million sq ft, respectively.

Commercial Rental Tax issue is taking the face of a big issue with every passing day. The most controversial of the new services that would attract service tax is “services provided in relation to renting of immovable property for the purpose of business”. A simple activity of renting out built up premises or open space or office space in India would now attract service tax. A question that is being raised in this context is, “What is the service that is provided by a landlord or the owner of the property while renting out his or its premises?”

In most of the cases that involve renting out of premises, the only service, if at all that can be called service, is the monthly visit by the landlord’s bill collector to collect rent. Perhaps, there could be a case for service tax where the landlord is providing certain extra services along with the premises; even in such cases the service tax should be only on the services component. Only if it is not possible to segregate the rent amount from the cost of services that service tax
be levied on the entire amount.

However, the moot question remains unanswered as to whether there is any service involved in mere renting of premises. If no service is being rendered then to what extent is it legally tenable to levy service tax on the rental amount itself? In this context, it would be of interest to refer to the provisions of section 297 of the Companies Act, 1956. The said section provides that certain contracts, entailing sale or purchase of goods or materials or rendering of service, in which directors or their relatives are interested should be approved by the board and in certain cases approval of the Central government should be obtained.

The state-run National Textile Corporation - has decided to put four more mills in central Mumbai up for auction, a move that could push real estate prices through the roof.The NTC's proposed auction of four mills in Worli and Parel could raise real estate prices in central Mumbai because developers are expected to bid 'higher than-market' rate for the around 40 acres of prime land, freeing it for private developers in this 'land-starved' metropolis. The state-run textile company has already raised around Rs.20 billion from its first phase of sales from the auction of five mills after the Supreme Court lifted the legal obstacle on the sale of Mumbai mill land in March 2005. It now plans to bring under the hammer the 18-acre Madhusudan Mills, in Worli - the largest in Mumbai. The other mills are Poddar Processors and Bharat Textile Mill, also in Worli, and Finlay Mill in Parel. The textile company is awaiting the government's nod to invite bids from private developers. 'Once we get the final nod from the state government, we will invite tenders,' NTC managing director O.P. Agarwal told IANS. Although Agarwal was not forthcoming on the amount the corporation is expecting, property consultants are more than willing to speculate. 'Prices will be as high as, if not higher than, existing rates, with builders from outside Mumbai coming in for bids this time,' said Gopal Sanyal, a property consultant. 'The three mills in Worli could fetch more than the going rate of Rs.20,000 per sq ft and the ones in Parel more than Rs.12,000 per sq ft.' Agarwal, however, admitted that prices have soared since the company last sold its mills. 'Prices soared even over the period we sold our mills in the first phase. While we got Rs.7,000 per sq ft for the sale of the 14-acre Mumbai Mills in Lower Parel -, a months later we got Rs.15,000 per sq ft for the sale of the 4.9-acre-Kohinoor Mills in Dadar, both in central Mumbai,' the NTC top official said.

The state-run textile company also plans to cash in on the booming real estate and plans to develop the land on its own. 'Plans are on to develop real estate on our own. We plan to construct a 72-storeyed India International Trade Tower in the 11.96-acre India United Mill No. 6 at Pravhadevi,' Agarwal disclosed. Kohinoor Mills was sold to Navi Nirman Sena chief Raj Thackeray-Umesh Joshi partnered Kohinoor Constructions, which is building a shopping mall at the site. Real estate prices in Mumbai, which are among the highest in the world, began to rise in 2004 and got a further boost when NTC auctioned its first set of five mills in 2005. But environmental watchers are not amused with the boom. 'The area is twice that of the Oval Maidan at Churchgate and thrice that of Cooperage, both among the only few green spaces remaining in the island city,' said Sonia Fernandez of Bombay First, a watchdog body. 'The state government's policy on the mill land is lopsided. The city's infrastructure can no longer bear the burden of private development. There needs to be some regulation in this madness,' said Sonia. 'The mills of Mumbai have played a major role in the industrialisation of Maharashtra. But the sale of these mill lands remains a contentious issue because some of the 600 acre of mill land was initially meant for public amenities and low-cost housing.'

Source: rxpgnews

Demand for Noida land is likely to reach an all time high with the Noida Board planning to develop one of the largest commercial spaces in the region. Conglomerates, both Indian and Multinational, scouting for commercial spaces, would now breathe a sigh of relief as the industrial heart of Asia is all ready to welcome them with its arms wide open.
The project will take shape on 225 acres on the Noida-Greater Noida Expressway and the scheme will be launched in the month of January. The land is located in the sector 94 and 124. According to the estimates, the area will accommodate the construction of 6,000 offices, each of 100-200 square metre.
The proposed project is believed to be three-and-a- half times the size of the Nehru Place district centre, the Capital’s prime business district, says a senior Delhi Development Authority (DDA) official.
Delhi sealing has emerged as one of the factors accountable for rising demand for office and commercial spaces in places like Noida. In keeping with this, industry watchers see it as a high growth period for Noida. This is primarily because of land scarcity in Delhi.
Proximity to Delhi is an advantage that Noida enjoys over its other counterparts including Gurgaon and Greater Noida. Also, better social infrastructure is another add-on to the list of the features owing to popularity of Noida.
The ongoing sealing drive has added to the rates of commercial property in Delhi. Few days back, the DDA sold a 7,232 square metre commercial plot in the Rohini twin district centres, sector 10, for a whopping amount of Rs 231 crore. It is believed to be one of the most expensive land deals for a commercial plot in Delhi.

Source : indianrealtynews