Tag Archives: Ahmedabad Real Estate

Ahmedabad property magnet to neighbouring developers

Posted on by Track2Realty
Track2Realty Exclusive

Bottom Line: Developers from Mumbai, Pune and many other parts of the country are finding Ahmedabad property market to be a happy hunting ground.

Ahmedabad, Gujarat Real Estate, Gujarat Jantri,india realty news, india real estate news, real estate news india, realty news india, india property news, property news india, india news, property news, real estate news, India PropertyReal estate is predominantly a micro market driven business and even the largest of the developers are often grounded in their home turf. Most of the realty brands have evolved in their own given geographical locations first before they branched out to other locations for expansion. Such expansions have also been more of metro centric.

There are very few case studies where the developers have flocked out to cities on sheer promise without registering their presence in the four metro cities. However, such migration to magnet territory is today quite visible in Gujarat where the developers from other states are increasingly flocking, most notably in the city of Ahmedabad.

Real estate developers from Mumbai and even Delhi-NCR are increasingly looking for greener pastures in and around the city of Ahmedabad. Whether it is a realty giant like Hiranandani or Ajmera or an emerging player like Grih Pravesh Buildteck, they are all gaining ground in Ahmedabad property market today. While expat influence is a known reality of Indian property market with expats emerging as a key home buyer, Ahmedabad is today witness to another set of expat influence – that of developers.

The developers have their own reasons as well. Some find the land prices attractive at this level, while the others find the approval mechanism conducive; Some are driven by the Gujarat growth story, others are goaded by the political reasons. But almost all these developers whose roads lead to Ahmedabad maintain that the overall eco system in the State is much better than other parts of the country.

Niranjan Hiranandani, Chairman, Hiranandani Group says the developers are bullish about Gujarat property market with arrays of infrastructural projects in the pipeline. Projects like Delhi Mumbai Industrial corridor (DMIC), bullet trains, metro rails, setting up of manufacturing SEZs, Dholera SIR, GIFT City, Port development, Smart Cities like Surat will boom the growth prospects in State of Gujarat. All these opportunity makes Gujarat State safest and bullish market for investors.

“State Government of Gujarat has ensured regular supply of basic amenities required by industries to set up their plants and other establishments.  State Government furnishes with continual power & water supply, better connecting roads, great infrastructure, set up strong telecom & fiber optical networks magnetizes corporate to draw their projects in the region to augment the project viability,” says Hiranandani.

Extremely bullish on his choice of future location, Abhay Kumar, CMD of Grih Pravesh Buildteck believes Dholera will lead the pack and the corridor from Dholera to Ahmedabad and Dholera to Bhavnagar area would see the maximum investment. These corridors look best for realty development because there is going to be most infrastructure support by government as it has got good connectivity and trade potential.

“Numerous developers are showing interest in Gujarat basically due to low cost availability of land and ease of doing business. By nature Gujaratis are law abiding and peace loving people and they have an attitude of non interference which makes this State a unique proposition for investment. Over and above Prime minister’s interest to develop this State as the best example for attracting investment; this has generated lots of interest among developers to move to Gujarat for launching their projects,” says Abhay.

Neeraj Tomar, Head – Ahmedabad, JLL India agrees that a large numbers of developers are looking to invest in the Gujarat market and are eyeing categories like industrial parks and commercial office projects. This market is still not perceived as expensive. The government is also acting as a catalyst and is providing all support in terms of developing the requisite infrastructure.

“The slowdown era vis-à-vis the Indian economy is diminishing slowly and the winds of change are in the air. With these changed sentiments all across the country, Gujarat will also have to carve out for its share of investments over the long term. The current scenario for Gujarat indicates that it has an advantage, but the challenge will be sustaining it over an extended period of time. Investors are always on the lookout for good investments, irrespective of physical boundaries. The principal fundamentals for attracting investments are fair valuations, expected returns on investments and risk management. Given the current scenario, Gujarat is figuring well on all these parameters,” says Tomar.

Gujarat can become an example for other States on how government can create room for investment. Analysts point out that to attract investment there is requirement of CCL- Corruption control, Clearances by government and Law & order and Gujarat is proving to be leading the pack in these benefits.

The developers who have forayed into the City are conscious of the fact that Ahmedabad’s real estate market is booming because of the huge growth of its industrial sector and overall high rate of development, fuelling both the commercial and residential properties. This commercial capital of Gujarat is rich in textile, pharmaceutical and chemical industries. Apart from being a well-established education centre Ahmedabad has also established itself as a major IT/ITeS and retail destination. The combination of the favourable factors naturally makes it a highly desirable destination.

Flats, apartments, serviced apartments, bungalows, penthouses and township properties are cropping up all over and the residential development in Ahmedabad is no more only in the form of individual bungalows. Though even today new bungalow schemes can be found on the outskirts of Ahmedabad city, especially along the Sardar Patel Ring Road coming under zones R2 and R3. However, the scarcity of land and expensive real estate prices in the city have brought in the trend of apartment houses in form of high rise towers in the city.

The prime residential areas that many of the expat developers have spotted in Ahmedabad are Shahibaug (in the northern part of the city), Satellite, Bodakdev, Vastrapur, Prahladnagar, Thaltej (in the western parts of the city), Maninagar and areas around Kankaria and Chandola Lake in the southern eastern parts of the city. The growth corridors for real estate development are the SG Road (Sarkhej-Gandhinagar Road), Sardar Patel Ring Road, Maninagar and on the north side of the Inner 132 ft Ring Road in areas like Nirnaynagar and Ranip.

Though locations in and around Ahmedabad are top picks for the expat developers in the State but apart from Ahmedabad, Surat and Vadodara also rank high in the State’s real estate sweepstakes. As Gujarat’s second largest city, Surat is all set to become an international diamond trading hub. It is located on the Golden Quadrilateral Highway and is well connected to Mumbai and Delhi. These are major magnets for the developers who are flocking to the State. Vesu, Piplod, Pal, Adajan and Varachha Road are the traditional residential destinations, and suburban locations like Bamroli, Khajod, Palsana and Puna Kumbharia Road are coming up.

Vadodara is Gujarat’s third largest city and is another preferred emerging investment destination for the developers trying to make inroads into the State. The prime residential areas are Alkapuri, Race Course Road, Old Padra Road, Jetalpur, Akota and Fatehganj.

Gujarat is no doubt a land of opportunities for these developers as it is strategically located on the west coast of India. Gujarat is well connected to the major cities of the world by air and sea routes. Gujarat, with a coastline of 1600 km is well connected to all the major port-based trade routes, such as USA, Canada, Europe, Australia, China, Japan, Korea Gulf & African countries and other major trade cities of the world by air route.

The State acts as a Gateway to the rich northern and central hinterland of India; connecting them via road, rail and air thereby providing immense trading opportunities.

Realty growth changing Gujarat’s urban landscape

Posted on by Track2Realty
Track2Realty Exclusive

Bottom Line: The real estate markets of Gujarat, most notably Ahmedabad and Vadodara are case studies in rapid development. The cities have kept pace on all the given scales of development—real estate developments, infrastructure growth and the economic vibrancy.

Ahmedabad real estate, Surat real estate, Vadodara real estate, Gujarat real estate, Urbanisation in Gujarat, Property market of Gujarat, India real estate news, Indian property market news, Track2Realty, Track2Media ResearchUrbanisation is inevitable and it changes the very look and feel of the cities across the country. However, probably none other city has been completely transformed the way cities like Ahmedabad and Vadodara and traditional old world charm has been overtaken by a thriving urban metropolis.

Facts speak for themselves. In terms of investment and infrastructure the state has been the front runner and most of the investment and urbanisation has happened in the cities of Ahmedabad and Vadodara. No wonder, the developers from across the country, some of them even with a strong foothold in the matured property market like Mumbai and Pune, are today flocking to Gujarat. To add to it, some of the developers in the state have also grown big enough to expand their footprint in other markets across the country.

Analysts debate how far the real estate growth has affected the classic charm of Gujarat, as there is a visible change in the new buildings of the city as against the classic old ones. It seems there is a change of generation in terms of living standards and urban outlook in this part of the world. These cities are growing at the fastest pace ever and Ahmeadabad and Vadodara have seen urbanisation transform the perception of the cities from a mere trading city to an emerging global metropolis. People come here for jobs, to earn a livelihood and to improve their lot. This increasing population has impacted the society as well.

In any given developing economy, people move in to an area and infrastructure follows. Whereas in Gujarat the infrastructure has always been better than many of the other Indian cities and the migration has only made sure that the developers have kept up the pace of development extremely well with the growth of the city. Urbanisation has triggered impeccable makeover in the city of Ahmedabad and Vadodara. As a result, Gujarat today stands out as one of the best investment magnet and that is driving the migration and urbanisation. Needless to add, the role of the real estate developers cannot be denied or undermined in this growth story.

Though some of the urban experts lament the fact that Gujarat is fast losing its old look, residents of Ahmedabad and Vadodara are rather happy that the growth in the realty market and infrastructure has also brought economic prosperity in the state. They believe the only way forward is increased urbanisation, though the direction of the growth has often been debated as well. Urbanisation has impacted the Gujarat market in many ways. Primarily one can observe that it is not only the Gujarati which is the predominant mother tongue of the city. It is still the most popular language used but it is fast being replaced by Hindi and English. Secondly, it is no more a cost conscious market in terms of its spending habits. The migrant population and the entry of big brands have completely transformed the outlook of the state’s market and economy.

A local real estate agent says that Ahmedabad has grown fast and hence the look of old Ahmedabad has been restricted to old city. Vadodara has retained some of its look; however most of the new areas have no relation to classic Vadodara. According to him, the change is too fast to be noticed and he rates Ahmedabad as 50 per cent and Vadodara as 65 per cent in retaining the classic looks.

“Urbanisation has reduced the population in Villages. Rapid migration to cities both Indian and foreign has made ghost towns out of prosperous villages. At the same time the development of the cities has been very good. The infrastructure has been improving steadily and the lifestyle of people has improved like any other metro city. Surat, Vadodara and Ahmedabad have a healthcare, education, eating out options, hotels, etc like a good city. The mindset of people also has been opening up to modern society of cosmopolitan people,” says the agent.

A regular traveller of Vadodara, Pranay Vakil, Chairman of Praron Consultancy wonders whether there is any method in the madness the way city is growing. According to him, the city fast needs to adopt a planned development model, failing which it would be an urban nightmare.

“You travel to Vadodara on a regular basis and it may not affect you since the real estate growth in the city has been quite constant. But if you visit the city after a gap of a few years, it hits hard on you. You start wondering whether someone is actually monitoring in which direction the city is growing. Some method is indeed needed in this madness to make sure the city does not look completely different than what it used to be,” Says Vakil.

Some of the analysts tracking the market maintain that the load on land and infrastructure is leading Master Plans redundant in terms of uneven growth. They suggest that master planning needs to improve to handle the load. Uncertainty is no excuse of not planning. In fact planning should take care of all eventual possibilities so that the resource utilisation is optimum. If that is done, Gujarat can truly emerge as a global destination.

This brings to the table the moot point as to what should be the roadmap ahead to stop the Gujarat markets from turning out to be urban nightmare. Analysts maintain proactive master planning body is a necessity. The urban development authorities across the state are a confused lot with the pace of development beyond their expectations. While there are thousands of illegal constructions across the cities of Gujarat, legitimate projects are delayed due to impractical rules. The government should have clear cut guidelines and focus on progress of the city rather than bring hindrance in form of impossible rules. The developers suggest that the government should learn from successful cities worldwide to make four of the top cities of Gujarat the best cities in India.

Multiple demand drivers in Gujarat property market

Posted on by Track2Realty

india realty news, india real estate news, real estate news india, realty news india, india property news, property news india, india news, property news, real estate news, India Property, Ahmedabad real estate, surat real estate, Gujarat real estate newsTrack2Realty Exclusive: Property markets are often referred with reference to their key demand drivers. Every city has a key demand driver as far as the growth of the property market is concerned. Some have it by home grown end-user demand; others have it with investors finding it magnet for future while many have expat community driving the property market due to increased urbanisation and the professional opportunities.

Which category is actually driving the property market in the state of Gujarat in general and cities of Ahmedabad and Vadodara in particular? More importantly, whether the key demand driver has the potential to take the property market forward to the next level of boom once the macro-economic indicators get back in green?

Analysts maintain the demand dynamics of property market in Gujarat are so complex that is not easy to evaluate the key demand driver and its potential. Unlike many other property markets that are clearly driven by one or the other factors, the demand drivers of property in the state are multiple. End-users are as relevant to give momentum to the property market of Ahmedabad and Vadodara as the investors.

Even the expat community, mainly the professionals, have a fair share of investment in these markets. However, this rise and growth of the markets of Ahmedabad and Vadodara has not sky rocketed the prices to the extent where the native end-users feel the pinch.   

“Gujarat property market is different in terms of its demand drivers. While in the initial stages of its evolution the home grown end-users had the major share, the non-resident Gujaratis later gave the market momentum. Now with the growth of the cities and infrastructure on a roll, investors are taking it forward to the next level. Of course, the expat professionals are also investing heavily into the market, fully aware that these are the cities poised for both the appreciation as well as to be settled,” says a realty analyst tracking the market in this part of the world.  

Manan Choksi, Regional Owner Ahmedabad, RE/MAX India agrees that there are multiple demand drivers to give impetus to the Gujarat property market. According to him, there are three drivers behind the property market’s demand: investors,   NRIs/NRGs, migrants and outside companies setting up shop in Gujarat.

“The expat entrepreneurs and professionals are a catalyst to keep the momentum up in property market. Expats from Middle East and Africa have setup a lot of businesses here. Also a few from Europe and US are keen to invest in Gujarat. The increased urbanisation is changing the face of Gujarat property market. The population in villages of Gujarat is dwindling while the cities the population is growing,” says Choksi.

Though the mega urban centres, the property markets of Ahmedabad and Vadodara are still very much within the reach of the average end-users. While artificial appreciation is an issue across many cities that deter the end-users, in the Gujarat property market the gap between the primary and secondary property markets is not that huge. In terms of affordability, the mid segment of housing at an average is priced between Rs. 3000 to Rs. 5000 per sq feet which is quite reasonable from the standpoint of any of the developed property markets across the country. Analysts even call it below average price keeping in mind the economic opportunities that these cities have to offer.

While NRI investment may have been a fancy thinking for many of the property markets across the country, the expectations of NRIs investing into the property market has actually been true n Ahmedabad market. As a matter of fact, majority of the NRI investment during the year 2013 has been in the Gujarat property market, which investors find more mature, stable and worth future appreciation. What is all the more significant is the fact that it is not just the Non-Resident Gujaratis but the expat Indians in general are finding the prospects of the city the new magnet to invest.

After all, the economic activity is on a roll in the state and the investors have sensed the resurgence of cities like Ahmedabad and Vadodara in near future. There are many industries coming up in these cities and all this is leading to the white collared and blue collared professionals flocking in search of employment. This has a chain effect on the property market in this part of the world. The expat professionals who were earlier known to drive the property market of Mumbai & Delhi-NCR, are today driving the Gujarat property market as well.

Investors who have burnt their fingers in some of the over-heated property markets by entering when the market was at its saturation point, find the Gujarat property market the right time to enter. Increased economic activity and some of the best infrastructure make them believe that this part of the world is set to emerge as the next global city.

In a nutshell, while one or the other demand drivers are behind the rise and growth of the property market in other cities, in the cities of Ahmedabad and Vadodara it is the multiple demand drivers that are taking the property market to the next level of growth. What is all the more important here is the fact that these markets have caught the fancy of big-ticket investors and mega projects at a time when the macro-economic problems have kept the overall sentiments subdued across the country. And hence, it is by and large agreed that once the sentiments go up next year Gujarat property market will lead the next rally of property boom. Post the General Elections in 214 it seems Gujarat real estate market will be leading the Indian real estate.

Ahmedabad on road to fastest and most forward realty market

Posted on by Track2Realty

Vibrant cities for vibrant economy-IX

By: Track2Media Intellisearch

Track2Media Rank-8

- india realty news, india real estate news, real estate news india, realty news india, india property news, property news india, india news, property news, real estate news, India Property, Delhi NCR real estate, Mumbai Real Estate, Bangalore Real Estate, Pune Real Estate news,Track2Media, Track2Realty, ravi sinha Ahmedabad stands out as a city that weathered the market slowdown most smartly and the property market of the city was the first in the country that showed signs of recovery by June 2009 itself. Since then realty in Ahmedabad is back and booming, with nearly 35% appreciation. The high economic growth and rate of urbanisation, along with the improvement in infrastructure in the state, have been catalysts in the growth of the real estate market. And the boom is not restricted to the western side of the city alone–properties across the city, irrespective of location, have witnessed a steep rise in prices

Gujarat is seeing its best decade ever, and city of Ahmedabad is poised to become one of the fastest and most forward cities of the nation. Even with the hike in prices of land, construction cost and repo rate hike, the real-estate market of the city is still attractive for national and international investors, proving that the city is unaffected by the momentary road blocks

“If you compare the pre-slowdown prices with the present ones, there has been an increase of about 22-25%. However, if you consider the cumulative rise in prices since the worst phase of the downturn, the increase has been almost 35%,” says Suresh Patel, Gujarat Institute of Housing and Estate Developers (GIHED) President.

The Gujarat Government envisages Ahmedabad as a world class city. In pubic-private partnership, it is looking to upgrade the city to make it, clean, viable and self sustaining. The size of the residential market in Gujarat has been estimated at over Rs 1500 core per year.

Since the beginning of the year 2011 Ahmedabad realty market saw positive economic sentiments coupled with improvement in enquiries that stimulated city’s retail market segment. A report by Cushman and Wakefield confirms this. “Many retailers are anticipating a further improvement in consumer spending and have started executing their expansion plans. As a result, the city recorded a rental growth of 7-11 per cent across most micro markets,” the report says.

The real estate trend in Ahmedabad indicates that the property prices will continue to rise at a very alarming rate. Demand for property is unlikely to saturate in this city even in the distant future due to its ever increasing value as a major commercial and industrial hub and contributor to the Indian economy. The strategic vocational advantage, superior infrastructural facilities and great potential for development of privately promoted ports are all contributing to the city’s glory.

The demand-supply mismatch also indicates the potential of boom in the city. Of the total 1, 30,000 houses that are said to be needed for Ahmedabad residents, only about 35,000 are created each year. The increase in property rate in both commercial and residential sectors is only reflective of the industrial growth that the city has seen lately.

Ahmedabad has, of late, attracted hectic commercial real estate ventures that include mixed-use realty that entail business, entertainment and hospitality projects. This promises to become one of the hottest real estate markets in the coming year. These complexes span across several thousands of square feet and offer a wide variety of facilities to residents of the city. Developers are recognising the commercial value of real-estate in Ahmedabad, and are adding to the 80% commercial-rich city-centre with ventures such as malls and hypercities.

Jaxay Shah, President of the Confederation of Real Estate Developers Association of India (CREDAI), Gujarat, also acknowledged the same and said that the higher GDP rate in the state and the infrastructure available have lent a boost to the market. There still remains a lot of scope for the real estate industry in Ahmedabad, he says.

Areas that were hardly urbanised till 5 years ago are now booming, with residential and commercial projects mushrooming in localities such as Bodakdev, Satellite and SG Highway. Though most developments are taking place in the Northern and the Western parts of the city, the central Ahmedabad with areas like, Paldi, Navrangpura, Ashram Rd, Vasna and Usmanpur are also catching up with realty developments. With continued preference for established main streets in the city, areas like SG Highway and Satellite Road remains the most preferred main streets in Ahmedabad, with the latter witnessing the highest rental value growth.

Ahmedabad commercial real estate is still on infant stage and is developing in and around C.G Road and Ashram Road, along with the old city area. Staying in step with demand, the present supply of commercial space is determined to be 0.3 million sq. ft. with an absorption rate of 60-65%. However, the market is expected to zoom in the wake of new construction activities. Ahmedabad, which did not witness any new mall supply in 2010, has been catching up fast in the year 2011 and is expected to add millions of additional retail pace in 2012 as well.

This commercial city of Gujarat is likely to grow by leaps and bounds in the next few years. The old city area and Sahibag, located north of it, are regarded as the old residential areas. Western side of Ahmedabad is gaining popularity as new residential areas, between Inner ring road and C.G. Road, such as Bodakdeo, Satellite, Vejalpur, Jodhpur, and Vastrapur.

As Gujarat gears itself to becoming one of the most economically rich states of India, buyers are keen to invest and seem to have faith in the overall growth of real-estate in Ahmedabad. Since 40% of the realty market share of Gujarat belongs to Ahmedabad, the city is evidently a hotbed for commercial and residency projects and remains as one of the most infrastructure-rich areas of Gujarat. Ahmedabad also enjoys a very strong connection with Gujarati NRIs, whose spending power and industrial skills have encouraged a healthy shift in property rates of late.

Advantage Ahmedabad

  • Most resilient market
  • Aiming to be a world class city
  • High growth & urbanization
  • Improved consumer spending
  • Gujarati NRIs

FDI rises 31% in 2011, realty gets its share

Posted on by Track2Realty
- india realty news, india real estate news, real estate news india, realty news india, india property news, property news india, india news, property news, real estate news, India Property, Delhi NCR real estate, Mumbai Real Estate, Bangalore Real Estate, Pune Real Estate news,Track2Media, Track2Realty, ravi sinha Despite a gloomy global outlook, foreign direct investment (FDI) clocked a 31 per cent growth to $27.5 billion during January-December 2011 period. FDI inflows for January-December 2010 stood at $21 billion.

Services still attracted largest chunk of FDI inflows at 20 per cent. This was followed by telecom, housing and real estate, and construction and power among others, a Department of Industrial Policy and Promotion data said.

Mauritius, Singapore, the US, the UK, the Netherlands, Japan, Germany and the UAE are the major investors in India.

Mumbai attracted the maximum inflow accounting for as much as 40 per cent of the total share of the FDI, followed by Delhi-NCR region, Bangalore and Ahmedabad closely following.

FDI inflows totalled $19.42 billion in 2010-11 financial year, down from $25.83 billion in 2009-10.

Official sources said that the Government’s move to liberalise foreign direct investment polices has been instrumental in sending positive signals.

Some of the norms that have been tweaked in the past include 100 per cent investment in single brand retail besides easing norms in share pledging for external commercial borrowings.

Properties worth Rs 3K cr to be displayed at GIHED show

Posted on by Track2Realty

india realty news, india real estate news, real estate news india, realty news india, india property news, property news india, india news, property news, real estate news, India Property, Ahmedabad real estate, surat real estate, Gujarat real estate newsMore than 500 real-estate projects worth over Rs.3,000 crore will be on display at a property show organised by Gujarat Institute of Housing and Estate Developers (GIHED). The three-day annual event will start from Friday, September 31, at Thaltej.

Around 80 developers will showcase their schemes in the seventh edition of the show. Of the total projects to be displayed at the event, 60 per cent are residential. Housing units starting from Rs.5 lakh to Rs.3 crore will be showcased at the event. Ongoing and upcoming projects like commercial property, malls, plotting schemes, row houses and bungalow schemes in Ahmedabad and Gandhinagar will also be displayed.

Developers say that the city needs 1,30,000 houses, against which only 20,000-22,000 houses are available. In order to meet the demand, approximately 35,000 houses are being built per annum. Still there is huge demand-supply gap.

Apart from local buyers, builders are hopeful to get sizeable bookings from NRGs. “As the show is during Navratri festival, a large number of NRGs are expected to visit Gujarat. The marketing exercise started much in advance in major cities of India and countries like the US and the UK,” said a builder.

The show will demonstrate European architecture samples. Students of different schools, colleges and architects and engineering institutes are invited to visit the show.

Gujarat property exhibition eyes Rs1000 crore business

Posted on by Track2Realty

india realty news, india real estate news, real estate news india, realty news india, india property news, property news india, india news, property news, real estate news, India Property, Ahmedabad real estate, surat real estate, Gujarat real estate newsGujarat Institute of Housing and Estate Developers (GIHED) is expecting Rs.1,000 crore business during its two-day property exhibition at Goregaon starting on Saturday, September 10.

GIHED President Suresh Patel believes a large number of Gujaratis are staying in Mumbai and they are the main contributor to the city’s development.

“Most of them want to have their own houses in Gujarat even though they are doing business in Mumbai. It will be a wise decision for them. Because the Gujarat Government has undertaken several developmental projects in the state, including metro rail and bullet train. With each passing day, many more industries are coming which will create huge job opportunities for people. That apart, Mumbai’s property rates are beyond the horizon of the common man,” Patel said.

GIHED is offering affordable houses to Mumbaikars. The cost of a 2BHK (1,200 sqft) flat in a posh and high-end locality of Ahmedabad will be Rs.30 lakh. The property rate per sqft will be between Rs.2,000 and Rs.5,500. Nearly, 500 prominent developers from Gujarat are participating in this exhibition.

Patel further claimed that property prices in Gujarat were going to appreciate by 15%-20% each year. “There is sluggishness in the Mumbai real estate market where buyers are not getting any additional value. Besides, in cities like Ahmedabad and Gandhinagar, there is no fear of power shortage and law and order problem. The infrastructure of both the cities has improved a lot. Both cities will be connected to Mumbai by fast mode of transport like bullet rain. By this said train, people can reach Mumbai in two hours,” he said.

Dinesh Patel, President of the Confederation of Real Estate Developers’ Association of India (CREDAI) said most Gujaratis are looking for a second house or a secured investment option.

Real estate experts said this exhibition would give tough time to Mumbai developers who were already reeling from the pressure of unsold inventory, high interest rate and increased input costs.

Consim Info to expand footprint in online property market

Posted on by Track2Realty

Economic Survey, Real estate survey, Delhi NCR real estate, Bangalore Real Estate, JLLM, Jones Lang LaSalle Meghraj, Track2Media, Track2Realty, ravi sinha, india realty news, india real estate news, real estate news india, realty news india, india property news, property news india, KP Singh, DLF, Unitech, Emaar MGF, ndtv.com, ndtv, aajtak, zee news, india news, property news, real estate news, 99acres.com, 99 acres, indianrealtynews.com, indianrealestateforum.comIndiabulls real estate, BSE, Bombay Stock Exchange, Mumbai Real Estate, India Property, Track2Media, Track2Realty, ravi sinha, india realty news, india real estate news, real estate news india, realty news india, india property news, property news india, KP Singh, DLF, Unitech, Emaar MGF, ndtv.com, ndtv, aajtak, zee news, india news, property news, real estate news, 99acres.com, 99 acres, indianrealtynews.com, indianrealestateforum.com, Indiabulls real estate, BSE, Bombay Stock Exchange, Mumbai Real Estate, India PropertyConsim Info Pvt. Ltd with online brands such as BharatMatrimony.com, IndiaProperty.com, EliteMatrimony.com and PrivilegeMatrimony.com has announced plans to expand its footprint in the online property business. The company said it will increase market focus in the Western and Northern regions and expand Indiaproperty’s current market leader position across all four southern states to these markets, as a part of its growth strategy.

Consim Info has also repositioned Indiaproperty.com  and announced marketing spends of  20 crores for the current financial year to support its expansion plans and unveiled its new look portal with advanced first time ever features such as video interviews with builders and developers, virtual property tours and online fairs and its new advertisement, kick starting the new marketing campaign.

Speaking at a press briefing held in Mumbai, Murugavel Janakiraman, Founder & CEO, Consim Info Pvt Ltd, said, “Our property portal business has been witnessing significant growth in alignment with the surging demand for new property and we believe the time is right for us to leverage our experience in online businesses and establish our leadership in this area as well.  We recently crossed the 1.5 million mark in registered users with 250,000 unique daily visitors and more than a million page views a day, establishing us as the number one property portal in the country. Our increased business focus in this area and strengthening of the senior management of Indiaproperty, should help us scale new heights this year.”

Detailing the growth plans, Ganesh Vasudevan, Vice-president and Business Head, Indiaproperty.com said, “IndiaProperty has been growing at over 100% over the last year in terms of revenue and number of projects and this growth has been lead by the Western region. The company is exploring strategic partnerships with builders and agents in the state and is in advanced talks to sign exclusive marketing agreements. We expect the Western and Northern markets to contribute to nearly 50 % of our revenues this year and these are key geographies for us in our expansion plans. Our sales and service delivery teams are being strengthened in alignment to our growth plans.”

PE Analytics plans to launch Real Estate Index

Posted on by Track2Realty

Economic Survey, Real estate survey, Delhi NCR real estate, Bangalore Real Estate, JLLM, Jones Lang LaSalle Meghraj, Track2Media, Track2Realty, ravi sinha, india realty news, india real estate news, real estate news india, realty news india, india property news, property news india, KP Singh, DLF, Unitech, Emaar MGF, ndtv.com, ndtv, aajtak, zee news, india news, property news, real estate news, 99acres.com, 99 acres, indianrealtynews.com, indianrealestateforum.comIndiabulls real estate, BSE, Bombay Stock Exchange, Mumbai Real Estate, India Property, Track2Media, Track2Realty, ravi sinha, india realty news, india real estate news, real estate news india, realty news india, india property news, property news india, KP Singh, DLF, Unitech, Emaar MGF, ndtv.com, ndtv, aajtak, zee news, india news, property news, real estate news, 99acres.com, 99 acres, indianrealtynews.com, indianrealestateforum.com, Indiabulls real estate, BSE, Bombay Stock Exchange, Mumbai Real Estate, India PropertyNew Delhi-based research firm PE Analytics has drawn up plans to launch Real Estate Price Index in partnership with a leading commodity exchange.

PE Analytics owns and operates PropEquity, an online subscription-based real estate data and analytics portal covering over 27,000 projects of 5,100 developers across 40 cities in India. The data and analytics enable clients to spot market trends and maximise risk-adjusted returns.

“We are launching the First Residential and Commercial Indices based on transaction prices in partnership with the leading commodity exchange shortly after a nod from the Government,” PE Analytics CEO Samir Jasuja told PTI in Mumbai.

These indices will be based on the actual transaction and registration values prevailing in various micro-markets for the residential and commercial asset classes.

PropEquity is collaborating with India’s banking and finance regulatory body and the country’s largest commodity exchange to develop housing starts and realty indices.

The indices will be the barometer for measurement of the real estate sector performance and will also enable trade on the exchange. The company is looking at September 2011 to go live with this product offering, Jasuja said.

PropEquity has created products that are unique in the Indian context, and which have been validated through the market and with marquee customers, he said.

With future plans already underway, Jasuja envisions PropEquity as a pan-Asia product and intends to raise a second round of funding for the company in 2011.

Hiked interest rates – Impact on the real estate sector

Posted on by Track2Realty

Track2Media, Track2Realty, India Real Estate News, real estate news india, india property news, india property investment news, Jones Lang LaSalle India, India Realty news, realty news india, india property news, property news indiaIt has always been axiomatic that when financial institutions raise their lending rates, there are bound to be ripples on the highly cost-sensitive Indian real estate market. The latest rate hike obviously means that  the cost of construction has gone up for developers, and this move by the RBI certainly does not come at the best of times for them. Banks have already taken a cautious approach to real estate lending and reduced their exposure to the sector, and most developers are now prevailed upon to raise a larger component of their construction costs from the private sector. The fact that such funds come at a higher cost of borrowing has already increased their construction costs significantly.

It would be logical to assume that, hoping to maintain their profit margins under such circumstances, developers would not hesitate to mark the incremental burden to buyers. This would certainly happen if buyer sentiments and resultant market activity were high enough to accommodate such a move.

However, the market for residential real estate is far from effervescent at the moment. In a scenario where staying competitive and selling stock is of utmost essence, developers are unlikely to increase the cost of their units and thereby risk losing more customers. While this will certainly impact their revenues to an extent, most developers do see a sufficient profitability quotient to make a strategic decision on this count.

On the buyer side, the low-to-mid income segments are invariably the most affected by a hike in home loan interest rates. That said, the impact of increased cost of borrowing is not as severe as that of the decreased allowable percentage of borrowing. Where this used to be at a steady 85% of the overall cost of the property, most banks are not extending more than 75% now. The fact that the salaried class now have to supply a higher contribution to the cost of their homes that is having a very tangible impact on demand.

The author, Ashutosh Limaye, is Local Director – Strategic Consulting, Jones Lang LaSalle India

1 2 31