Continued....

As per industry estimates, Mumbai office rentals have declined significantly over the past two years. Rentals in Nariman Point declined by a maximum of 14% from 2008 peak levels, and currently range from Rs 200-400 per sq.ft. per month. In the IT hubs of Gurgaon and Noida, rentals declined by almost 25% from 2007 peak levels, but have since stabilised. Hyderabad was one of the worst affected, as rentals dipped over 35% from peak-levels.

Investors who want to invest in rental yield funds should re-focus their investment strategies
around rental income rather than property appreciation, which has been the case for most investors up till now. However, experts point out that the tax implications of investing in rental yield funds may turn out to be cumbersome.

“Rental yield funds have huge tedious tax implications. Investors will have to pay tax on income generated by way of rental yields. Moreover, expenses are high on such funds and are payable upfront to the fund manager,” said independent financial planner Gaurav Mashruwala. According to Mr Mashruwala, such funds will do well if asset are bought at lower price levels or just after a deep correction.

Source: Economic Times

With the economic slowdown about to end, experts are suggesting people to invest more into Real Estate which is showing positive signs of comeback. If you want to buy Commercial property, then this is the right time. For just Rs 5 Lakh there are commercial office space available at one of the best corporate locales in India - "Nariman Point, Mumbai". The 30-40% decline in property prices(from peak levels), coupled with firming interest rates have resulted in private equity (PE) funds eyeing investment opportunities in real estate rental space. A few fund houses have already begun seeking investment commitments from investors, indicating 16% to 22% as annualised portfolio returns.

PE funds investing in real estate rental space follow a simple investment strategy. These funds are suited for investors who are risk-averse and prefer returns similar to those from fixed income schemes. According to PE industry officials, Milestone Capital Advisors, Xander Real Estate Partners, Indiareit Fund Advisors and an investment arm of Delhi-based real estate company DLF are planning to launch rental yield funds in India.

“Real estate rental funds are launched when property rates are close to their troughs. This helps funds to buy property at lower prices. Moreover, yields of investments increase in a rising interest rate environment,” said Ashish Joshi, managing partner, Milestone Capital Advisors, which raised money for a second fund investing in rental assets.

A ‘rental yield PE fund’ only invests in properties that are either occupied or under long-term lease or rent. In simple terms, the money collected from investors is used to buy out the property from the current owner. Once the property is acquired, the PE fund becomes eligible to receive rent from tenants. The rent portion is restructured or re-negotiated regularly in order to meet the return profile of the investor. The fund (and its investors) gain by way of rent recovery and appreciation in property prices. PE funds, normally, invest in commercial property. The managers route a major chunk of the pool into office properties and the remaining into IT/ITeS parks, shopping malls and warehouses.

“The segment looks good as rentals are likely to go up 10-15% over the next few months. Demand for commercial real estate space will go up as supply has come to a standstill post the economic slump. This will not only improve yield for investors but also increase overall commercial property value,” said Kamal Khetan, vice-chairman & MD, Piramal Sunteck Realty.

Rental returns from real estate investments have been traditionally higher in India compared to other Asian countries. This is mainly due to the restrained capital flows and the lack of an organised institutional investment market. According to real estate experts, a sharp correction in rentals during 2008 and first half of 2009 will result in rentals surging over the next few months. The rental market usually reacts to the surge in equity market with a 5 to 8-month lag.

The city-based state-run United Bank of India (UBI) has launched an eight percent home loan scheme available till March 31 next year, a release said here on Tuesday. The bank would charge eight percent interest on home loan for the first year and nine percent for the second to fourth years. From the fifth year onwards, it would charge interest on a floating basis, which would be two percent less than the benchmark prime lending rate (BPLR) prevailing at that time, the release said. Under fixed rate, the bank would charge one percent less than the BPLR and the interest rate would be revised every five years, it said. ‘United Bank of India announced reduction in interest on ‘Car Loans’ by one percent on the card rates up to December 31, 2009, and to add to the toppings, it also announced waiver of processing fees on car loans during the period,’ the release added.

Source: Indian Real News

Valuation of real estate, agriculture, industries and machinery and plants, marine properties etc. is under the consideration of Parliament. In June 2007, Delhi Government has also approved new property valuation rates for registration of property aimed at correcting undervaluation of property in the city, which affects taxes raised. Property will not be registered at values below the minimum value set for different locations and areas.

Initiated by the Ministry of Company Affairs, the draft bill to recognize, regulate and frame rules and regulations is under examination by different agencies and very soon will be tabled in Parliament, according to S S K Bhagat, Vice-President, Institution of Valuers-IIV (India).

He told PTI that the ministry had elicited views from various institutes and submitted its recommendations. Rationalization of valuation techniques is also under the purview of Institute of Chartered Accountants, Institute of Company Secretary, Institute of Cost and Works Accountants of India, Institute of Insurance Surveyors, The Indian Council of Arbitrator's.

The Department of Company Affairs, Government of India (www.mca.gov.in), had also convened different rounds of meetings among various bodies and the draft bill is also under circulation with the ministry of finance, company law, as per PTI.

Efforts to inculcate professional and academic touch to the concept of valuation has been coordinated with leading educational institutions as well, report added. Currently, Periyar Maniammai University, Thanjavur, Annamalai University at Chidambaram, both in Tamil Nadu and Sardar Valabhai Patel University at Anand in Gujarat offer post diploma courses in valuation with focus on real estate, plant and machinery and relevant topics.

The Bengal Engineering and Science University at Shibpur near Kolkata also plans to commission a MBA programme with six semesters on Real Estate Valuation. Similarly Sivaji University at Kolapur in Maharasthra is to offer Master's Degree Programme in Real Estate Valuations. Mysore University is also planning to to start similar PG Degree programs on valuation.

Sources: Livemint, Business Standard, PTI

Taking into account the future property prospects of real estate sector in Indian capital, Dubai-based Sherwoods Independent Property Consultants has set sights on New Delhi property sector and will open an office over there shortly.

Property adviser in Dubai, with a strong presence in the UAE as well as Europe, foresaw New Delhi's buoyant housing market with rising demand among the burgeoning middle class as India's economy booms.

Sherwoods estimated that there is a supply It also aims to beef up its presence across other major Indian cities. As well as showing signs of recovery from the global crisis, interest rates in India have from fallen from 11.5 per cent to 9.25 per cent, making mortgages cheaper.

With the UPA returning to power, the property pundits anticipate the revival of real estate market in the northern region that has witnessed shrinking of transactions when the country was in election mode. “The sale and purchase of property will now start taking place as the Center is expected to have stable government led by the UPA,” Punjab Properties and Colonizers Association Chairman Anil Chopra told PTI.

The property transactions dipped by 70 to 80 per cent in the northern region ahead of the elections as people were not inclined to invest in the real estate due to apprehensions that no major political party would get majority in the elections to form the government, experts said. “We observed just ahead of the start of the elections that the sale and purchase of land or residential or commercial properties almost came to halt with investors as well as end users preferring to wait till the new government is formed,” Chopra said.

He said that with the demand expecting to start emerging after the elections, the property rates would again move upward which would bring some relief for the realty sector. “We are seeing enquiries for residential as well as commercial properties by customers particularly in Gurgaon and Delhi after the elections which is a good sign for the real estate industry,” Realtech Group CEO Rohit Malhotra said.

Two of India’s large business houses, the Birlas and the Tatas, are looking at real estate as a major investment area, albeit in different ways. While the Birlas, through a financial services arm, are offering real estate as an alternative investment option to clients, the Tatas are planning to develop surplus land held by group companies. The Tatas may also invest in the sector part of funds raised through recent public offerings.

These moves come at a time when real estate prices are correcting and low demand for projects has prompted large developers to default on financial commitments and project deadlines.
Aditya Birla Management director Ajay Srinivasan, who also heads the financial services business, said the conglomerate is merely gearing up for the future. “We are now putting a team in place and want to be ready when the time is right,” he told ET.

Tata Housing is now identifying excess landbanks owned by companies such as TCS, Voltas, Rallis India, Tata Motors, Tata Coffee and Tata Tea. Tata Capital, the financial services arm of the Tatas, is scheduled to close a largely successful non-convertible debenture issue on Tuesday; it has so far raised Rs 2,300 crore against a targeted Rs 1,500 crore. Although Tata Capital has said that it won’t lend to group companies, it has proposed to invest in most asset classes.
Anticipating a large value erosion in the realty space, Indian corporates are planning to float new funds to acquire assets in the domestic property market. Real estate funds such as Saffron Advisors have either floated or are in the process of floating funds with corpus ranging between Rs 500 crore and Rs 1,000 crore.

“As far as Indian realty is concerned, for the right projects, funds are still available,” said Saffron Advisors MD Ajoy Kapoor. “Conservative European investors, after conducting extensive due diligence and research, are more comfortable with investing in Indian real estate, provided they are able to align with right partners,” he added. A few months ago, Munich-based retail aggregator Deutsche Capital Management underwrote $20 million for Saffron India Real Estate Fund I, an India-focussed real estate fund. DCM is raising a specific fund for investing in Indian real estate through Saffron Advisors.

Tough lending norms, unfavourable primary market and global financial worries have affected fund flow into the Indian property market. Real estate deals have fallen and fancy valuations by developers are being corrected to a large extent.

Credit: Economictimes.com

An apparent slowdown in the real estate sector is forcing PE (private equity) funds to rein in their exposure to the sector, with nearly 30 per cent of the deals now stuck over valuations.
PE funds and analysts have become far more cautious in evaluating real estate investments in India. One of the analysts said that some of the funds are tightening norms for valuations after the slowdown and at least 30 per cent of the deals are taking a much longer time to go through because of valuation issues.
Residential projects Mr Ritesh Vora, who is a director (investments) for PE fund Saffron Asset Advisers told Business Line that as the residential projects are in a correction mode, PE funds are becoming more selective. “The evaluations are more rigorous than they were a year ago. We are being more selective than before,” Mr Vohra said.
But the situation was not so tough for real estate companies earlier. With the stock market on a downslide, real estate companies deferred their IPO plans and turned to PE funds to raise money. According to ICICI Securities, during the last two years, around 60 funds raised $30 billion in assets to invest in Indian real estate.
“The returns have been as high as between 25-30 per cent on an annualised basis, which kept PE funds to continue investing in the sector,” Mr Vohra said. In developed countries, returns for similar investments are between a mere 3 and 4 per cent.
Marginal slowdown The real estate services company Cushman & Wakefield’s Joint Managing Director, Mr Anurag Mathur, pointed out that some of the PE funds, particularly foreign funds, are taking a more cautious approach. “Funds are now more selective and wary of the delivery timelines, costs, quality as well as performance of projects,” Mr Mathur said. He said marginal slowdown in the Indian economy, distressing conditions at home (for foreign players) and the dampening of investor confidence because of mortgage crisis in North America and Europe were some of the reasons for the PE funds to become cautious.
Mr Om Chaudhry, Chief Executive Officer of another PE fund FIRE Capital Fund said because of the slowdown faced by the sector, the developers were witnessing more realistic valuations of their projects. “As a result, PE funds are getting wider choices at attractive valuations than was the case earlier,” Mr Chaudhry said. But Mr Vohra of Saffron Asset Advisers points out once the stock market returns to normal, “real estate companies might return to the market.”

INDIA Real Estate Expo 2008 is showcasing residential and commercial properties in Dallas, TX & Seattle, WA. Expo begins on May 31st 2008, and ends on June 8th 2008.

Horizon Expo recently announced the debut of INDIA Real Estate Expo '08 in DALLAS & SEATTLE. India is reckoned as one of the fastest growing economies of the world and owing to its inherent advantages of a large consumer base, raw material resources, world class manufacturing capabilities, competitively priced talent base, a comprehensive legal & tax system and a strong operating financial system has become a preferred investment and business destination. Real estate, a "sunshine industry" in India, is flourishing rapidly, propelled by strong demand drivers and significant transformations such as deregulation of the sector, increasing transparency and professionalism, improved product quality and service standards etc.

Availability of housing loans to Non Resident Indians (NRIs) has impelled property investment in India. Reserve Bank of India (RBI) has reported that inward foreign remittance has grown 3 folds in last couple of years, and majority of these funds have been used to buy immoveable property in India.

In the midst of all the available property investment options in India, it becomes an extremely difficult task for an overseas investor to perform a due-diligence to find a reliable investment opportunity. Recognizing this particular issue, Horizon Expo LLC, a value-added licensed entity in USA, has announced its 3rd edition of INDIA - Real Estate Expo '08. This exhibition would bring home buyers and real estate developers under one roof, providing the necessary platform to perform a proper due-diligence before making a life-saving worth of investment. Real Estate Developers from Major Indian Cities like Delhi, Bangalore, Mumbai, Pune, Chennai, Hyderabad and Punjab would be showcasing residential, commercial & retail projects at the exhibition.

This would be the third Indian property exhibition that Horizon Expo would organize in United States. Its previous exhibitions held in year 2007 have helped numerous home buyers from San Jose, Los Angeles, New York and New Jersey. FIA has thrice awarded Horizon Expo LLC with Excellence in NRI Real Estate Services. Bangalore's top property developer, "MANTRI DEVELOPERS" is platinum sponsor of the exhibition, a Delhi based realty major, OMAXE is a Gold Sponsor, showcasing an upscale residential condominium project in Ludhiana, Punjab.........


At Maa Properties, we have in-depth knowledge of property markets, extensive experience, specialized skills and resources necessary to provide an entire range of reliable and responsive property management services. No matter how far away you are currently located, our online services enable you to take charge of things and efficiently handle all property-related transactions back home.

We would like to take the opportunity to welcome all the community members living world wide to our real estate portal.(NRI)

Townships with designer interiors and world-class architecture are passé. Developers are now turning to golf to attract non-resident Indians and high net worth individuals in the premium housing segment. Residential dwellings built around a golf course are the latest buzzword in the super-premium housing segment of the Indian realty industry, estimated at $15 billion and growing at 35 per cent annually.

No wonder big players like Unitech, DLF, Ansal API, Omaxe and Jaypee have already taken the plunge with an array of golf-centric projects. “These high end customers are ready to pay big bucks for a sprawling home amidst the greens with a promise of high class lifestyle,” said a spokesman from DLF. “And even with a hefty price range from Rs.7.5 million to Rs.90 million, these projects have been snapped up like hot cakes,” he further added.

“Golf home projects are exclusive projects. Slight slumps in the market that generally slow down the middle housing segments usually do not affect these projects, as the buyer is exclusive and very selective about the property,” Magu said.

And the trend is fast spreading from metros to emerging cities. For example, Ansal API’s Sushant Golf City Lucknow is spread over 2,000 acres on the outskirts of the Uttar Pradesh capital.

“Earlier golf was restricted to a select group, but it has grown popular over the years with many middle level executives and business class taking active interest in the game,” Banerjee said. And with top-tier Indian players like Jeev Milkha Singh and Digvijay Singh teeing off at $ 2.3 million world tournaments, the sport’s popularity is booming across the socio-economic spectrum.

That is the reason Ansal API are proposing a Royal Palms Golf and Country Club in Lucknow that will offer residents the services of golf trainers and coaches. Even Sahara is providing a golf academy to impart professional golf training in its Amby Valley project built around an 18-hole golf course at Lonavala, 96 km from Mumbai.

After being proclaimed as one of the Seven Wonders of the world, Taj Mahal automatically got the attention from Indian Real Estate Industry. There are many Real Estate Developers from foreign who are interested in the Investment in the area around it.

Also, Property developers and consultants across the country are keenly watching the inclusion of the Taj Mahal as one of the new Seven Wonders of the World. The architectural marvel located in Agra has already been a tourist destination for several hundred years, but its inclusion in the coveted list is expected to further drive tourism--and give real estate and retail in the city a new fillip.

There are already two prominent malls--Taneja and Adlabs—selling handicrafts and ethnic artefacts located near the Taj Mahal. These malls will now get a huge boost. “Developers like Parsavnath, Omax, Ansals and Unitech have started eyeing huge residential and retail developments near the Delhi-Agra highway, spread across several lakh hectares,” says Anuj Puri.

Currently, retail properties in and around Agra are priced at Rs 6,500-9,000 a sq ft. Residential property, on the other hand, is available from Rs 3,500-4,000 a sq ft. Says architect Hafeez Contractor, “The Taj Mahal is all set to boost the real estate market in Agra. Agra should now see a shift in population from Tier-I cities, provided the infrastructure supports it.”

Anil Malhotra from Yum! Restaurants International said, “Agra already has Pizza Hut and KFC restaurants. But now that tourist footfalls in the city are likely to go up, we will be expanding the number of our restaurants significantly.”

A 24-hour TV channel dedicated to real estate goes on air this month in India, a hot property market where buying a new home is considered a hallmark of success among the youthful middle class. About 90 percent of all property investment in the country is in houses, while an economy growing at 8 to 9 percent a year has spurred demand for shopping malls and offices as well.

The owners of "Real Estate TV" say their station will be the first of its kind in south and southeast Asia, a one-stop shop for everything related to the property business and some 250 related industries, such as cement and steel. "It will provide comprehensive, latest and authentic updates on all aspects of real estate, including infrastructure," said Manoj Namburu, chairman of the Alliance Group which owns it.

"Apart from property information, analysis and advice, we will have various shows on lifestyle, heritage homes and interior decor among other things," said Krishnan Sriram, the channel's corporate communications chief. The channel can also be seen in the Middle East, targeting the large Indian expatriate community in the Gulf.

Real Estate TV will also air game shows and even soap operas with a real estate theme, as well as a reality show on the red tape and corruption that faces home-buyers. India's property boom gathered pace after the government eased rules on foreign investment in the construction industry in 2005 to help revamp the country's crumbling infrastructure and fill an estimated shortfall of 20 million homes.

Investors, especially from the United States, have flocked to India since, drawn by a demand for homes among a burgeoning middle class, whose income is growing at 12 percent a year. Still, rising mortgage rates and a doubling of property prices in major cities in the last two years have sharply raised home prices, sparking fears of a downturn. But Real Estate TV is confident of finding a profitable niche on Indian airwaves -- already congested with a glut of news, entertainment, sports and spirituality channels -- because the construction industry is a top advertisement spender.

Leading real estate consultancies Jones Lang LaSalle (JLL) and Trammell Crow Meghraj (TCM) announced their merger on Tuesday to form the largest real estate services firm in the country under the name, Jones Lang LaSalle Meghraj. While the market share of the new entity will be 35% (taking into account all property consultants), it would be 50% of the international property consultants sector.

The total real estate under management under JLL Meghraj will be a colossal 44 million sq ft, combining 21 million sq ft of JLL and 23.2 million sq ft of TCM. The combined leasing transactions will now be 22 million sq ft, the project and development services would be more than 21 million sq ft.

“The new entity will offer new services also, like a hotel division, new capital markets as well as asset and shopping center management,” says Anuj Puri, country head, JLL Meghraj. The merger takes place after Meghraj Properties bought back the equity of Trammell Crow and then after contemplating the offers, chose JLL as its partner. Trammell Crow was taken over globally in 2006 by CB Richard Ellis.

“With TCM being a dominant player in the domestic market and JLL having international expertise, the new merged entity will definitely be a force to reckon with in the real estate sector,” says Puri.

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.

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.

Real estate sector will continue to be one of the fastest growing sectors.The year 2006 was one of the very good years for the real estate sector, if not the best, in the country. What’s more, experts say 2007 will be better.

With almost all major real estate india companies outperforming the 50 stock benchmark Sensex by hefty margins, the scene in the real estate segment can only get better from here on.

Construction activity across the country is on an upswing, with the state governments offering incentives to real estate companies in a bid to check the spiralling demand for houses and commercial space.

Various studies have said that there would be about five times increase in office space in the next five years, 200-million sq ft for organised retail by 2010 and over 50,000 new hotel rooms will be added during the same period. India will have a demand-supply gap of 17.9 million housing units by 2010, says a study.

The 10th Five Year Plan say that out of the total shortage of 22.4 million dwelling units, over 70 per cent is for the middle and low income brackets. The additional requirement of housing per year during the plan period of 2002-2007 has been put at 4.5 million units per year.

Experts say the real estate sector would continue to be one of the fastest growing service sectors of the Indian economy. A recent study by leading business chamber Associated Chambers of Commerce and Industry of India (Assocham) pegs the total share of FDI in the domestic real estate market at 26 per cent out of the total FDI expected by 2010.

The same study also says that the real estate market is currently growing at 30 per cent per annum and offering maximum returns to investors. “The domestic real estate market, which is presently estimated at $16 billion (Rs 72, 496 billion), will increase by over three and a half times and touch $60 billion (Rs 2,71,860 crore) by 2010,” the report of the Study on Future of Real Estate Investment in India says.

Incidentally, only last year, the government had allowed 100 per cent FDI in the property and construction sector.

This is not the only good news. All major mutual funds and banks have earmarked major sums running into Rs 3,500 crore for this fast-growing segment.

The year 2006 also saw many real estate biggies trying their luck at the stock market, and making handsome gains.

If the maiden IPO of Parsavnath Developers, aimed at raising Rs 1,000 crore, received spectacular responses with 62 times over subscription, the IPO of Sobha Developers also got good response. In the pipeline are mega IPOs of DLF and Orbit.

Such was the buoyancy associated with the sector that Ishaan Real Estate of the Raheja Group successfully raised £180 million on the London Stock Exchange (LSE) while another company, Hiranandani Constructions, is planning to raise $500-750 million on the LSE.

According to reports, the market size, which is now estimated to be $12 billion, is expected to grow at 33 per cent to $50 billion by 2010.

In what can be another indicator of the dream run of this sector, the market value of Unitech shares has gone up by a whopping 75,000 per cent. While the market cap of the company was Rs 55 crore in November 2002, it now pegged at over Rs 41,000 crore.

Similarly, the price of Arrow Webtex scrip zoomed by over 44,000 per cent from Rs 1.35 to Rs 600, while Ansal Properties rose by 29,500 per cent from Rs 3.33 to Rs 985.70.

Such is the global interest in the real estate success story of India that the International Herald Tribune has predicted that the real estate india market will grow at a more hectic pace the next year.

Says a senior officer of India’s biggest public sector bank State Bank of India: “The real estate sector has only just started growing. Name one single major company that is not venturing into this sector. A booming population will ensure that housing will always remain a problem area. It is a good investment opportunity.”

In the region, Punjab has taken a major lead when it comes to real estate projects, with almost over 75 mega housing and infrastructure projects having been cleared as development of townships, housing & urban infrastructure under the Industrial Policy, 2003 by the state government.

While Chandigarh continues to hold on to its pre-eminent position as far as property rates are concerned, Tier II cities like Mohali, Panchkula, and districts such as Amritsar, Jalandhar, Ludhiana, etc, are seeing feverish construction activity.

DLF has been permitted to construct three mega projects, while Emaar MGF Land has received a go-ahead to develop over 2000 acres.

The region is also witnessing a spurt in the number of malls and multiplexes, with many major companies entering the scene. The Assocham has said that the number of malls in Kolkata, Mumbai, Bangalore, New Delhi, Hyderabad and Pune will grow to 300 by 2010 as against their present strength of 50.

Demand from IT & ITeS sectors encourage developers to build.

The IT and ITES boom in Kolkata has led to a deluge in office supply space with the increase being pegged at a whopping 150 per cent.
According to a latest Cushman and Wakefield report, the total supply of office space in Kolkata for the year 2007 is around 3.5 million square feet, with emerging suburbs of Rajarhat and Salt Lake Sector V accounting for the lion's share. The study indicates that the supply is in tandem with the demand since the vacancy rates in the city hovering between five to eight per cent.

This year, approximately 1.5 million sq ft has been projected for IT/ ITES SEZ in New Town, Rajarhat, which has already witnessed substantial pre-leasing activity. Another 1.5 million sq ft has been booked by corporates like Genpact, TCS, PWC, Cognizant and IBM Daksh in Salt Lake Sector V and Rajarhat.

In 2006, the supply of office space in Kolkata was around 1.35 million sq ft, of which 1.34 million sq ft has been absorbed. This represents a marked improvement over 2005, wherein the supply was at around 700,000 sq ft and the corresponding absorption was around 600,000 sq. Relatively low rentals, easy parking availability and improved connectivity have contributed to the development of the emerging suburbs. Owing to saturation in central business districts (CBD) , Park Circus connector and Rashbehari connector have also emerging as locations for corporate offices.

The study also points out that while majority of the supply will be by large developers, smaller local developers who have proposed IT/ITES offices in the range of 50,000 -100,000 sq ft in Sector V will cater to cost sensitive requirements with low rentals. The study is corroborated by Jones Lang LaSalle report on real estate in Kolkata, released in February 2007, according to which, "Kolkata, whose economy grew by eight per cent in 2005, is home to 175 IT and ITES firms which employ approximately 40,000 people. Rapid expansion and increased business activity is expected to strongly boost demand for speculative built space as well as built-to-suit offices and 4.5 million sq ft of additional supply is likely to be completed by 2007 in Salt Lake and New Town Rajarhat."

Retail clients are also joining the fray.

Tier III cities are in realty race and are attracting large interests from real estate developers as well as potential investors. IT/ITes companies and upcoming retailers are jostling hard to make profits on the first mover advantage in these markets. They are counting on the factors like low property rates, availability of vast land, a great workforce, and improving living standards.
The growth of Indian rich and consuming class coupled with dropping rates and other fiscal investments on home loans has been major reasons increasing appetite of the average Indian consumer. This has been further fuelled by growing working population in the age group of 25-55.

As such, the city of rock garden does not have much to offer as far as residential development is concerned. The development has been shifted to the areas of Pinjore, Zirakpur, and Kharar from Mohali and Panchkula. The size of these colonies ranges from as low as 5 acres to as high as 200 acres.
Bhubaneswar is another place which is offering a conducive atmosphere to IT sector. IT majors Infosys and Satyam are planning to spread their wings here. Apart from Infocity-I, DLF is coming up with IT Park in Chandaka Industrial Estate. Genpact has also announced its plans to set up BPO SEZ in Mancheswar Industrial Estate. A bio-tech park is also on the anvil.

Source: Economic Times

With the recent growth seen in the Real Estate Sector in India, everyone is getting attracted towards it. First the Morgan - Stanley Deal in which they invested $150 million in Oberoi Constructions to get a 10.75% stake, making it the biggest deal in the construction space. After that it is seen that Ambani Brothers are on the Real Estate Pie hunt in India. Indian real estate sector has also drawn considerable interests from the Ambani brothers – Mukesh and Anil, who are now showing their inclination towards private equity funds.

Now in this race the latest contender is the TATA Groups. They jumped in the league with a huge amount of Rs 4500 crore. The name of Tata’s newly created company is Tata Realty and Infrastructure, which will make investments in various infrastructure and development projects. The arm is known to have modeled on the lines of Kishore Biyani, promoted Future Group’s Kshitij, says a source familiar with the plan, who did not wish to be identified.
Bomaby House, the group’s headquarter is working on the plans for its new business. As per the changing face of construction and development industry in India, the group is likely to bet big in Indian real estate this time.

Under the government of Mr Bhupinder Singh Hooda Haryana becomes the hub of Special Economic Zones. Haryana has opted for the SEZ route to industrialization and faster growth. Under the Haryana State Special Economic Zone Act-2005, enacted by the Hooda Government, developers of SEZs are given relaxation in state-level taxes and duties. Besides providing conducive environment for growth, SEZs will offer industry global standard infrastructure facilities like airports, railway lines, roads, electricity, schools, hospitals, banks, shopping malls and parks. What's more, entrepreneurs are provided with tax-free enclave, globally competitive surroundings and status of foreign territory for purposes of trade. They are also offered sops like smooth transportation facilities, easy access to domestic and international markets and permission of excisefree receipt of raw materials from domestic levy zones. There can't be better evidence of pro-industrial climate sweeping the state than the fact that Haryana accounts for the largest number of SEZs in the country. It has received proposals for setting up 68 SEZs. Out of these, the Central Government has given clearance to 49 to be set up in various parts of the state. These will bring in investment of the order of Rs 1,75,000 crore in developments of infrastructure facilities and attract industrial investment worth crores of rupees. Besides changing the face of industrial growth, SEZs will seek to redefine the very lifestyle and living standards of the populace of the state.