Real Estate India

HDFC Property Ventures Ltd is investing $20-25 million into South India’s largest central business district (CBD) mall developed by Nitesh Estates in Bangalore. The move probably marks the $900-million HDFC Property Ventures’ foray into retail infrastructure in a rather tight-market environment, sources said.

HDFC Property Ventures will pick up around 20-25% stake in the 6-lakh sq ft Nitesh Mall, which is being designed by Seattle-based Callison. Nitesh Mall, which is the Bangalore-headquartered real estate firm’s first retail play, is estimated to be a Rs 300 crore project.

The Nitesh Mall will come up on a 5.5 acre patch located in proximity to hotel Leela Palace, off the Indiranagar 100-ft road that is considered one of Bangalore’s high street retail hubs, with most big brands operating their flagship stores there. When contacted Nitesh Estates’ director, development, LS Vaidyanathan declined to comment on the deal. HDFC Property Ventures CEO KG Krishnamurthy could not be contacted immediately.

The development comes at a time when private equity funds are believed to be staying away from real estate/retail investments on account of the weakening consumer sentiments and an economic slowdown. HDFC Property Ventures is Nitesh Estates’ third PE partner. Last year, the firm attracted investments from New-York based Och Ziff Capital and Citigroup Property Investors, with the latter co-developing the Ritz-Carlton hotel in Bangalore with Nitesh.

Nitesh Estates had earlier announced that it has identified property in southern cities of Chennai, Thiruvananthapuram and Kochi for similar retails initiatives. Construction of the mall in Bangalore is expected to be completed by the end of 2009 with the project planned for luxury brands apart from a large format retailer as the anchor client.

Courtesy: ET dtd 04-08-08

NEW DELHI: Little known realty firm Young Builders has bought Delhi Metro’s 2-hectare land at Vishwavidyalaya metro station in North Delhi for Rs 220 crore in an auction reports Sanjeev Choudhary. It will construct a residential complex at the site. The developer has bought the land on a 90-year lease and is likely to get a developable area of 3.5 lakh sq ft, which will translate into a land acquisition cost of around Rs 6,200 per sq ft. A residential project being developed by Parsvnath Developers close to Vishwavidyalaya metro station is being sold at Rs 10,000 per sq ft.

Courtesy:-E.T. date: - 5/08/08

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To take a decision to buy a property in one’s life time is an extremely important decision as one has to drain down the whole amount of hard earned precious savings for owning suitable home. After selecting a home of one’s choice, he will have to go through and check a lot of legalities and paper work. As such, one must be conversant with various legal terms and technicalities.

1.Clear Title Deed: - One must ensure and investigate the records of last 25 to 30 years from registrar’s office whether the property selected is unencumbered and has a marketable clear title. It will be better if such documents are got examined by a lowyer so that there may not be any hurdle while mortgazing same for obtaining loan from bank or financial institution.

2.Property Under Construction: - When a property of one’s choice is under construction, he should ensure that the builder has all the legal document viz-a-viz agreement signed between the builder and the Landlord, CLU, layout plan duly approved by the concerned authorities, environmental clearance and other necessary permissions required for construction of multi storeyed buildings etc.

3.Ready To Occupy Property: - In case of ready to move properties one must ensure that the seller has clear title and possession of property as well as right to sell the property. Also check that the building has been constructed as per approved plan, it has not been mortgaged and all dues till date for water, electricity & house tax have been paid in full. Also ensure to take all necessary original documents i.e. allotment letter, completion certificate & possession certificate etc etc obtained by the seller from the builder.

4.Payment of stamp duty for Sale Deed: - Usually stamp duty is charged as fixed by the government and is payable by the purchaser. Builder, seller and purchaser are required to be present at the registrar office at the time of registration. Also ensure proper documents are obtained after making the payment.

With real estate developers lobbying for special residential zone on the lines of special economic zones, the government has now indeed stated considering their proposal. The ministry of urban housing is of the view that earmarking of land masses in cities and their peripheries for such zones can really boost country’s housing stock, provided there are enough regulations in place. The policy makers fear it may not turn out to be a foul real estate play for developers. Also there is major hindrance to convince states in doing so, land being a state subject.

Courtesy: - E.T. dt 1st August 2008

The big worry for most people is what the house will eventually cost? At the end of, it will work out to Rs.3 Lakh. Those who opt for the monthly payment option will need to shell out Rs.2, 000 every month.

It could well be termed a lottery with a difference. Anyone who has chanced to buy a lottery at some point is aware that the rewards are huge for an almost minimal charge. Matheran Realty is banking on this for its first phase of 2,000 flats, situated about 100 k.m. from Mumbai in the picturesque Karjat, this project will have apartments at 300 sq. fit. apiece.

So, how will this work? The mechanism is pretty simple actually, with a person having to fill an application form which is priced at Rs.100. To make sure there is no unfair advantage, a person can fill in just one form ensuring everyone is in with an even chance. Besides, there is no question of packing and choosing since you just take the flat that comes your way. All the 2,000 apartments will be given to the winners through the lottery method. The price tag is Rs.999per sq. ft.

Matheran Realty is working with UK’s Eredene Capital and Philippines’ Sterling Construction Systems (SCS). The township, called Tanaji Malasure City, is now witnessing the first phase of construction. The plans by any yardstick are gargantuan – in all, there will be 2 lakh houses with each having an area of 300-500 sq. ft. Come January 2009, the first set of owners will be ready to move into their dream home.

SCS is banking on the paucity of affordable housing in Mumbai to drive its mega township. “We expect a huge response to the scheme,” says SCS president (marketing) Harinder Bhalla. There seems to be hope for those who do not get their allotments in the first phase. They will get preference when booking starts for the second phase. That effort may be worth it since the project will be home to schools, colleges, hospitals and a retail centre. The entire exercise is expected to be completed over the next 10 years. All this will be over 100 acres. Eredene Capital will fund the project to the extent of Rs.131.2 crore with SCS offering technical support.

The big worry for most people is what the house will eventually cost? At the end of it, it will work out to Rs.3 lakh those who opt for the monthly payment option will need to shell out Rs.2,000, Speaking of construction technology, SCS will use prefabricated Hardiflex fibre cement Boards. This has been used with some success for housing projects in the Philippines, Australia, Jordan, Vietnam and in India. Importantly, it lowers construction cost by 15-20% and construction is much faster. With a price tag of Rs.3 lakh, this form of housing could work well for those in the Rs.8,000-1,0000 salary brackets.

In terms of profitability, there is always a question mark. “Such projects are profitable though the margins may be lower than what premium property developers get, “says Park Lane Property Advisors managing director Akshaya Kumar. Others tracking the industry think that low-cost housing will have acceptable levels of production quality and succeeds in cutting down frills such as high quality paints open space and parking.

Courtesy: - ET. dt. 1St August 2008

Excellent Infrastructure, Special Residential, Zones, A Green And Sustainable Environment, Uniform Land Laws Across The Country, A Single Window For All NOCs And Efficient Land Records Will Change The Face Of Realty In India In 2020.

Indian real estate in the past few years, has significantly transformed itself and has been through a roller caster situation – the highest of the high being the unprecedented few of FDI following the opening up of the sector, interest rates at very affordable 7 per cent. Public listings of many companies and price hike; on the other end the lowest of the low has been market capitalisation of the recently listed companies hitting unexpected lows, a 20-30 per cent price correction in the metros,
Sluggish adsorption, spiraling inflation adding to the already high input costs and the worst of the lot interest rates 14 per cent.

But, these are surface level fluctuations that operate on what must be described as one of the biggest opportunities in the world for construction and infrastructure development. India needs not just homes (22million of them), here is need for offices, SEZs, airports, roads, schools, hospitals, entertainment centres… the list is endless. This inherent need is an opportunity that cannot be denied. In 2020, India is slated to be an economic super power and one of the underlying assumptions is that infrastructure would be the booster rocket of growth. But, for all this to happen, some realities of the real estate business need to change. The following three things will be a reality in 2020.

100 per cent infrastructure – Real Estate projects, whether residential or commercial, will have 100 per cent infrastructure guarantees. This means that all projects would have quality access reads, water, electricity, connectivity, safety and security. Our cities are bursting at the seams and given our pace of development, the shortcomings of meeting infrastructure needs are likely to widen.

Thus, the projects that are likely to succeed in the future will be those that have quality in terms of basic infrastructure. In fact, real estate development which encompasses housing, schools and colleges, hospitals, SEZs, offices, retail and industrial developments, entertainment centres and sports facilities will converge with the conventional infrastructure (of roads, water, electricity, airport, ports etc) and be seen as an integral part of infrastructure development of the nation.

SRZs – Special Residential Zones must become a reality. Unless one addresses affordable housing for the teeming millions much of the expected gains may remain a dream. The SRZs are like SEZs, only the development caters to housing for the masses. SRZs are to be free of government levies and taxes, thus making homes more affordable by up to 30 per cent. This will ensure that the common man has chance of getting a roof over his head at affordable prices with the best of essential amenities.

Green mantra – Green and a sustainable environment while carrying out urban development would be part of the landscape like water and electricity. This is not only because one needs to contribute to preserving our environment, but also because sustainability would translate into distinct cost advantages. Green and sustainability will be consumer driven and not necessarily developer driven.
Three more things that will happen to change the face of the real estate sector by 2020 include.

Land would have uniform laws through-out the nation – Currently land being a ‘state’ subject is under the jurisdiction of the local governments. There is a kaleidoscope of interwoven state, centre and local laws dealing with every parcel of land. This means that there are varying rules, regulations, standards, practices, from town to town across India. Even the simple concept of replicating ‘best practices’ from town to town across the country. In short-business is not as usual across India. Even the simple concept of replicating best practices’ across the country cannot be replicated smoothly due to a fragmented legal framework.

A single window for all NOCs and clearances – There is hardly any predictability in terms of when one can get clearances or NDCs. It can take any time from three months to three years. One of the primary reasons for this is the lack of single window for all clearances and NOCs. Reducing the ‘time to market’ will reduce costs. The current unpredictability, enhance efficiency and ultimately pass on cost benefits to end users as risks of delay significantly decrease.

Efficient land records – Perhaps the riskiest par of the real estate business is the lack of robust and reliable land records. If one were able to have reliable land records by 2020, one would have taken a huge step towards making the sector bereft of risk.

In 1991, our then Finance Minister Manmohan Singh had concluded his maiden budget presentation with these words, “No power on earth can stop an idea whose time has come”.
The time for real estate development to drive the GDP, to create employment and to take India to its rightful position in the comity of nations is here! During the next two decades the signage across our country will be “India: Under Construction.”

Courtesy: - HT Estate. 26July 2008

Both Bhiwadi and Dharuhera are part of the 2021 regional plan for the National Captial Region

Atbustling industrial town on NH-8, Bhiwadi has acquired the ‘real estate destination’ tag. When developers in the area realized that land availability was extremely limited in nearby Manesar and Gurgaon.Already home to over 2,500 industrial units, Bhiwadi serves as a gateway to Rajasthan.The Rajasthan (state) Industrial (development) and Investment Corporation (RIICO) had Envisaged a growth pattern on the lines of Pune and Hosur for Bhiwadi and today the town is living up to that vision. Several real estate firms like Ashiana, M-Tech, MVL, and the Piyush Group are developing integrated townships in the area and the growth of the industry in the area has led to a spurt in demand for housing. Ashiana’s project Ashiana Utsav offers post-retirement lifestyle accommodation to senior citizens while M-Tech developers’Camelia Gardens offers luxury villas with their own swimming pools. Commercial project in the area include the Central Market, the Ganpati Plaza Complex, and the Ashiana Arcade Complex. The Ashiana group also has two retail Malls coming up.

Bhiwadi’s industrial zone is expected to be the next hot commercial hub as a number of SEZs including one by the Reliance group are coming up in and around the area.
RIICO plans to develop a dry port to facilitate value added services like, container sheds, transit yards, warehouses, railway siding and truck parking, apart from excise payment and customs clearance facilities. To attract investment in biotechnology sector, RIICO has also developed a state-of-the-art biotech park.

Proposals for a railway station and a road by-pass have been sanctioned — in less then four years, Bhiwadi will be connected to Rewari by a broad gauge rail link and within two years by a bypass to NH8 and the Sohna Road. Barely a 15-minutes drive from Bhiwadi is Dharuhera in Haryana. Bullish about the area, the Haryana Government has already invested in Bawal. In 2020, both Dharuhera and Manesar will become very important locations as thanks to the expressway Gurgaon is already seen as a part of Delhi. In that scenario-in 2020–Neemrana and Dharuhera would serve as suburbs.

The fast-paced industrial development taking place in the area has acted as a catalyst for the rapid growth of real estate in the area. Developers active in the area include Parsvnath, Omaxe, Dwarkadhis, GTM, and Natraj. Parsvnath city located at Dharuhera Sectors 1, and 1-A, is spread out over 114 acres and will offer apporximatly 1000 apartments of three bedrooms each and 150 villas. All these will be air-conditioned and facilities will compare to the world’s best cities. Plots available in this township will range from 300 square yards to 960 square yards.

According to Amit Chiller of landmark Developers, four
residential projects and one five star hotel have been approved in the area and an international hotel chain will operate the hotel project. On the residential side, the company plans to construct two low-rise apartment projects and mini farm houses of 1000 square yards each. These would be weekend homes for business executives. Small villas would range between 300-500 yards and have a covered area of 2,400 sq ft. The hotel will be a 12-acre property with 3,000 rooms. The clientele will include business tourists in the Indo-Japanese corridor area.

Courtesy:-H.Tdtd:-26-07-2008

Trammell Crow Meghraj, one of India’s leading international property consultants, recently launched their detailed real estate study on “Major IT-ITES Hubs In India — A Snapshot” at a function in Leela Kempinski Hotel. The launch took place at a celebratory event organized by the Delhi-based publishers of Real Estate Observer, a real estate magazine in which TCM is a knowledge partner. The event was graced by leading dignitaries including Tim Eynon, CEO, Prozone Enterprises Pvt. Ltd., and Niranjan Hirananadani, MD, Hiranandani Group.

The study analyses the impact of the proliferating IT-ITES sector on the country’s real estate scenario, giving detailed city profiles for all Indian metros and evolving IT-ITES destinations, and summing up with a comparison of cities in the IT-ITES viability context.

Realty plus

SOME CONDITIONS UNDER WHICH A LANDLORD CAN ASK HIS TENANT TO VACATE THE PREMISES

The Rent Control Acts of various States contain provisions to protect tenants against eviction by the landlord on arbitrary grounds. Usually, no order for the recovery of possession of any premises will be made by the rent controller in favour of the landlord against a tenant in normal circumstances.
The controller may make an order for the recovery of possession of the premises on one or more of specified grounds only. An application should be made to him in the prescribed manner.

These specified grounds include:

Non-payment of rent

The tenant has not paid the rent or arrears within two months of the due date. No order for recovery of possession of any premises is made if the tenant pays the rent due or makes a deposit. However, after obtaining this benefit once in respect of any premises, a tenant is not entitled to it again.

Sub-let without permission

The tenant has further sublet or assigned without obtaining the consent of the landlord in writing. Any premises which have been let for being used for the purpose of business or profession will be deemed to have been sublet by the tenant if the tenant has allowed any other person as a tenant in the premises without the consent of the landlord.

Using premises for other purposes

The tenant has used the premises for purposes other than that for which it was let, without obtaining the consent of the landlord in writing. The landlord must give a notice to the tenant asking him to stop misuse of the premises. The tenant must have refused or failed to comply with such a requirement within one month of the date of service of the notice. Further, the misuse of the premises should be causing public nuisance, damaging to the premises or should be detrimental to the interests of the landlord.

Residence not used

If the tenant or any of his family members have not been residing in a premises let for use as a residence for a period of six months. Also, if the premises let out for residential purposes are required by the landlord for self-occupation. They may also be required for any person for whose benefit the premises are held. The landlord or such a person should have no other reasonably suitable residential accommodation.

Unsafe building

The premises should have become unsafe or unfit for human habitation and required by the landlord for carrying out repairs. Also, the premises should be required by the landlord for the purpose of additional building or alterations. The proposed reconstruction should not radically alter the purpose for which the premises were let. The alteration may also be in the public interest. Further, the plans and estimates of such reconstruction should have been properly prepared and necessary funds should be available with the landlord.

Some other reasons:

The tenant has either acquired or been allotted possession of a residence.
The premises were let out to the tenant because he was in the employment of the landlord and the tenant has ceased to be in such employment.
The tenant has caused substantial damage to the premises. Unless the tenant carries out repairs within the specified time or pays the landlord compensation as the controller may direct, he can be vacated.
The tenant has used the premises in a manner contrary to a condition imposed on the landlord, Government or the local development authority. A Government authority may have imposed some conditions while giving him a lease of the land on which the premises are situated. — A G

Courtesy: - TOI dtd: - 26th July 2008