Tag Archives: Bangalore Real estate news

Why Bangalore commands highest rental yields?

Posted on by Track2Realty
Track2Realty Exclusive

Bottom Lines: The fundamentals that make Bangalore command the highest rental yields in India are sustainable and realistic.

BangaloreMayur Shah, an NRI from Boston wanted to invest back home on the residential space. His first choice naturally has been the hometown Ahmedabad. However, he was advised by the local agents to instead go for a Bangalore property.

His first impression has been that he was being taken for a ride as the property prices in India’s Silicon Valley has been a bit higher than the Ahmedabad market. However, a closer look at the Indian property market made him realize the rationale and prudence of investment in income producing city like Bangalore.

“Purely from the standpoint of ROI (Return on Investment) Ahmedabad or many other cities of India do not make any sense when compared with Bangalore. The rental yields in these cities are hovering around a meager 1-1.5 per cent, depending upon the location. However, Bangalore property promises to give almost three times higher,” says Shah.

Facts speak for themselves. As per the data available with Track2Realty, the real estate think-tank group, Bangalore rental yields are highest in the country. It is range bound between 3-4 per cent, depending upon the location. The property prices are still much lower than many other cities, including the financial capital of India, Mumbai, or the Delhi-NCR market.

Another report by Global Property Guide suggests the rental yields in Bangalore are anywhere between 3.7 to 4.4 per cent. The report adds that this seemingly higher rental yields are nevertheless long way below the 2007 level where the yields had been in the range of 7.16 per cent to 9.92 per cent.

What sustains highest rental yields?

While rental yields in other Indian cities are in the range of 1-1.5%, Bangalore rental yields are around 3-4%

The 2007 level indicates the yields had been in the range of 7.16 per cent to 9.92 per cent, as per Global Property Guide

Reason of highest rental yields is consumption of office space per household that is competitive in Bangalore with global cities like London, Singapore, New York, Tokyo

In major global cities the consumption of office space is around 60-65 square feet per household and in Bangalore absorption is 50 square feet 

Analysts believe the credit for highest rental yields in Bangalore goes to its robust economic activity. Consumption of office space per household in the city is a testimony of the fact. Data available with Track2Realty shows consumption of office space per household in Bangalore is competitive not only in India but also internationally in London, Singapore, New York, Tokyo etc.

In major global cities the consumption of office space is around 60-65 square feet per household. In India the ratio per household even in a city like Mumbai is 25 sq feet. Kolkata has a dismal only 14-15 square feet office space per household. In Delhi-NCR it is again 20-25 square feet per household. However, Bangalore has the impressive absorption is 50 square feet office space per household which means the volume of office space and houses being supplied have been in equilibrium.

In London despite of so much population pressure it still has 50-55 sq feet per household. Singapore has 60-65 sq feet per household; New York has 160 sq feet per household. Now since Bangalore maintains that global demand trend it is attracting the expat professionals who are always on the look out for rented property.  

Ramesh Nair, CEO & Country Head, JLL India seems to agree with the theory when he says that among the seven major office markets in India, Bengaluru continues to have the lowest vacancy levels at slightly less than 4 per cent. At a pan-India level, the average vacancy in commercial real estate stands at 15 per cent, as of 4Q16.

“From these figures, it is clear that IT hubs continue to see a good supply-demand equilibrium compared to other markets in the country. Developers in these IT hubs, especially Bengaluru and Pune, need to look into addressing the existing space crunch before the situation forces occupiers to consider some other cities,” says Nair. 

JC Sharma, VC & MD of Sobha Ltd sums up the debate when he says that the rental values of Bangalore also appear to be high because the capital values are realistic.

“Bangalore is the only city that is truly demand driven and the increasing exodus of corporate sector in the city only indicate the trend of high rental yield will further gain momentum. As of now, we are looking up to Bangalore rental yields on an international benchmark and not national average,” says Sharma.

The big question is whether Bangalore rental yields can actually touch the major cities of the world where 7-8 per cent rental yields are the norm. Well, it has already breached that mark in the past and once the macro economy improves indications are that Bangalore rental yields will yet again be at par with the major cities of the world. 

By: Ravi Sinha

Smart strategies to drive growth of luxury hotels

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By: Rami Kaushal, Sr Executive Director, Consulting & Valuation Services, CBRE South Asia

Starwood Hotels, Sheraton, Bangalore, Brigade Gateway, Bangalore Real estate news, realty news india, india real estate news, track2media, track2realty, ravi sinhaTrack2Realty: It is increasingly being observed that standalone luxury hotels are becoming unviable in the country, especially in the case of owned, built projects where the land is acquired, and typically comes at a high cost exceeding 40% of the total development cost.

Many hotel operators in the upper upscale and luxury categories are gradually shifting towards asset light models, with pure-play hotel management and franchise roles being preferred —The Leela Palaces, Hotels and Resorts being a case in point.

This is not to say that the market has struck the death knell for the luxury hospitality business in India—far from it! In fact, the business today has turned to other strategies to continue as profitable propositions.

One such survival strategy adopted in recent times by luxury hotels in India has been the creation of “smart” hotels—in terms of the use of smart technology and innovative techniques to create economically as well as ecologically sustainable properties.

Sustainable hotel design is increasingly becoming a necessity for most luxury projects, more than just a design option. Practices such as water and heat re-cycling methods, lighting retrofits using LED, solar lighting, wind energy for lower carbon footprints, vitrified tiles with wood finishes instead of wooden floorings, color-coded garbage bins for efficient solid waste management, etc., are all being progressively adopted by the premium hotels business.

Today’s luxury hotel guests too, are happy to do their bit for the environment by supporting and staying at such hotels which have a higher initiative for sustainability.

Some of the key drivers for sustainable practices in the hospitality business around the world in this regard include:

  • Cost savings
  • Hedge against utility rate increases
  • Emerging brand standards, and
  • Higher guest experience

As far as hospitality chains in India are concerned, nearly all of the luxury hotels run by the Indian hotels major, ITC Hotels, for instance, are LEED Platinum rated. While the ITC Gardenia in Bangalore has a non-air-conditioned lobby with a four-story-high ‘Green wall’, the ITC Windsor Hotel, also in Bangalore, utilizes energy created from its own wind farms; and the ITC Maratha in Mumbai uses nearly 80% of its energy consumption from renewable sources.

The Marriott Hotels, meanwhile, has launched a global initiative for reducing energy consumption by 20% by 2020. The Oberoi, Mumbai, has put in place highly efficient systems for water management, including using re-cycled water for flush systems and gardens. The hotel also uses low-voltage halogen reflector lamps in guest rooms for 40% energy saves.

The Leela Palaces concentrate on sustainable measures too, such as rainwater harvesting and native plants in landscaped areas for reducing water consumption and site disturbances.

The use of smart technology by such luxury properties for controlling costs and energy conservation includes cloud technology for operational efficiencies, thermal storage for air-conditioning systems, and the construction of rainwater harvesting pits, among many other sustainability approaches.

As for the right time for undertaking such initiatives, sustainable design and operation procedures are part of a larger global trend in the realty market at present, with major global corporations investing in robust sustainability programs.

In a bid to unburden their bottom lines, luxury hotels in the country are gradually realizing and integrating the use of smart technologies into their service offerings to guests. Apart from offering ‘green’ solutions, smart technology constantly offers cost-effective measures for tackling business challenges. Going forward, such smart strategies can only continue to drive innovations and growth of the luxury hospitality segment in the country.

Ahmedabad, Jaipur, Kochi and Kolkata emerge as upcoming IT- BPM destinations: C&W

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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, Bangalore real estate news, Bangalore International Technology ParkTrack2Realty: Ahmedabad, Jaipur, Kochi and Kolkata have significantly improved their value proposition for IT-BPM services delivery over last five years and emerged as front runners next only to Tier I cities or ‘Leader’ locations which continue to be the preferred choices for IT-BPM industry.

The ‘leader’ locations, however have also seen, a shift towards expansion into peripheral locations as emerging alternate delivery locations. These are the findings of a report by Cushman & Wakefield and NASSCOM, ‘Emerging Delivery Locations in India: The Rising Tide’.

The report includes a survey and study that evaluates the top 10 ‘Challenger’ cities that show the potential to attract IT-BPM companies to set-up and expand their operations in the medium term. The front runner cities are followed by Bhubaneswar, Coimbatore, Trivandrum and Visakhapatnam as the second choices while Chandigarh and Indore as promising locations.

Over the last couple of years, the transformations in delivery models have altered location strategy of IT-BPM organizations. There is an increased focus on non-linear growth, serving new customer segments, verticals and geographic markets, attracting domain knowledge and emergence of digital technologies has led to shifts in global delivery models.

Sanjay Dutt, Executive Managing Director, South Asia, Cushman & Wakefield said, “India’s Tier II markets are at an interesting cusp of growth. While many of these locations have been in the frame as next destinations for a very long time, it is only now that realistic signs of their emergence are visible. While the existing delivery locations will strengthen their proposition and new one’s may emerge that offer specialized services and greater value addition in times to come. However, these locations have to be backed by strong state government and local government policies order to grow as IT-BPM destinations.”

All the front runner cities have exhibited notable improvements in various parameters that have helped them to be among the top performers. Ahmedabad showcases strong infrastructure with good air connectivity, significant growth in IT Grade A office stock, upcoming metro rail project and location advantage of being on the Delhi-Mumbai corridor to name a few.

On the other hand, Jaipur offers a wide talent pool with headcount and number of IT-BPM units doubling in last five years along with good air connectivity and under-construction metro rail.

Kochi presents a distinct cost differential with operational cost savings up to 25% along with enabling IT infrastructure like presence of submarine communication cables ensuring high speed internet connectivity with export revenues tripling in last five years.  Kolkata excels in business performance with employee headcount and number of engineering students doubling in the last five years.

Talking about the growing upcoming IT-BPM destinations in India, R. Chandrasekaran, President, NASSCOM said, “The BPM industry has always been known for its versatile nature, and we have been able to stay ahead of the curve because we were not a stationary target. From providing unique domain expertise and venturing into new geographies, the industry has also acquired capabilities across domains.  Now, with changing client needs and the growth in broadband penetration, the latest trend that we are witnessing is that more and more companies are entering tier 2 & 3 towns. Hence, it is the need of the hour that we build a robust ecosystem in these towns to help organizations in their functioning. NASSCOM and the industry will work with the government to improve infrastructure in these cities and support ministries to achieve the dream of an inclusive Digital India.”

The Cushman & Wakefield-NASSCOM survey further elaborated the growth opportunities in these ‘Challenger’ locations by evaluating their performance across parameters such as Business Environment, Talent, Infrastructure and Cost Differential which were benchmarked against the average for Tier I cities.

PARAMETER TOP PERFORMERS
         Business Environment          Kolkata

         Jaipur

         Chandigarh

         Ahmedabad

         Talent          Jaipur

         Bhubaneswar

         Coimbatore

         Visakhapatnam

         Infrastructure (both social & physical)          Ahmedabad

         Kochi

         Kolkata

         Jaipur

         Cost Differential          Kochi

         Coimbatore

         Trivandrum

         Visakhapatnam

         Indore

         Real Estate (Office)          Ahmedabad

         Kolkata

         Trivandrum

 

The largest increase in the number of IT-BPM registered units in the last five years was noticed in Coimbatore followed by Visakhapatnam and Jaipur.

The highest overall cost differential was recorded at Kochi at approximately 25% compared to Tier I benchmarks. Kochi has the highest differential in terms of people cost at nearly 22% while Indore clocked the highest differential under the “other costs” at 40%.

The employee headcount more than doubled in 7 out of the 10 cities in the last five years. The highest increase was witnessed in Coimbatore followed by Visakhapatnam and Ahmedabad. With more than 1.3 lakh employees, Ahmedabad also had one of the highest employee headcount, preceded only by Kolkata clocking nearly 1.7 lakh employees.

Most of the emerging cities have recorded attrition levels below 10%, which is less than half of the levels of 22-25% reported in Tier I cities.

The number of student enrollments has increased in most (nine) emerging cities, surpassing the Tier I benchmark of 23% growth over last five years. Kolkata, Jaipur and Visakhapatnam noted the highest increase in last five years.

While Kolkata recorded the highest export revenue at nearly USD 1.8 billion, Visakhapatnam recorded the highest growth in export revenues in the last five years followed by Kochi and Chandigarh. Other cities too exhibited healthy growth in export revenues in the range of 60-80% in the last five years.

Enabling infrastructure such as Grade A IT office space recorded healthy growth in few cities in the last five years. Coimbatore, Visakhapatnam and Ahmedabad each witnessed increase in Grade A stock of IT and IT SEZ space by more than 10 times in the last five years. While the rental values in most of these cities are lower by 55-65% as compared to the Tier I benchmark rental values; Coimbatore and Indore offer the lowest rentals.

From a housing perspective the number of under-construction residential units increased in almost all of the 10 cities, 5 of these even surpassed the Tier I benchmark. The highest growth was seen in Bhubaneswar followed by Indore and Trivandrum.

As per the study, the key advantages in operating out of these emerging ‘Challenger’ cities, include business continuity by providing an alternate business destination with strong local Government and industry body support; Access to talent pool which is both adequate and broad-based and relatively lower operating cost owing to low salaries and cost of operations.

Some of the challenges highlighted by the respondents were- lack of availability of suitable talent at mid and senior management levels; lack of soft skills in local talent and exposure to real world technical expertise leading to increased cost of training; Poor connectivity to suburban locations hindering mobility of employees; Infrastructure challenges such as adequate power supply, lack of recreational places, shopping centers and quality schools and educational institutes.

With increase in competition from other regional destinations such as China, Malaysia, Indonesia, Thailand, Vietnam, and Philippines; it has become important to adopt several best practices to accelerate the pace of development and visibility to the alternate destinations. Some of the practices recommended by Cushman & Wakefield and NASSCOM include

         Modules on specialized IT skills in syllabus, active contribution by IT companies

         Creating industry specific cluster of related companies – “Innovation Centers,” which gives them competitive advantage and increases collaboration

         Development of Hi-tech Zones and Software Park Clusters within or in proximity to educational institutes and training centers to ensure greater industry-talent pool connect

         ‘Priority Sector’ status to the IT-BPM industry with dedicated government machinery to promote the interests of the industry and foster its growth

Ensure that cities grow in all aspects and can offer physical and social infrastructure that can meet expectations of a talent pool that is globally exposed and highly demanding.

Coimbatore market scaling up on hospitality

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Starwood Hotels, Sheraton, Bangalore, Brigade Gateway, Bangalore Real estate news, realty news india, india real estate news, track2media, track2realty, ravi sinhaTrack2Realty Exclusive: In 2010 when Le Meridien Coimbatore, a Rs. 300 crore project of Appu Hotels, announced to open a nine-storeyed hotel with a total built-up area of seven lakh sq ft, spread across a 6.75 acre plot, there were not many takers. The critics either termed it as an over ambitious project or a venture that was ahead of time.

Who would have believed at that point of time when even in Chennai, five-star hotels were dependent mainly on multi-national companies, corporates and the affluent, the Coimbatore with the larger middle income segment would have a market for that. However, the city has indeed scaled up on the demand of quality hotels since then.

Within a short span of time the critics were forced to eat their own words and today many big ticket hotel projects like Choice Hotels India, the wholly owned subsidiary of Choice Hotels International, are coming up with the grand opening of their new property under their upscale brand Clarion namely Clarion Hotel Coimbatore. Most importantly, hospitality has emerged as a serious business in the city, even though the real estate developers have thus far not been looked at this segment as seriously as the residential or commercial establishments.

Analysts believe Coimbatore, which has a fast-growing industrial sector, strong educational infrastructure, location advantage with neighbouring towns that have extensive international business exposure, is all set for a leap in the hospitality sector. Many even maintain that contrary to the general perception people in the city have the spending potential, ability and desire to spend but the avenues have been pretty limited.

But with the success of a couple of ventures the entire ballgame has suddenly started changing and now more projects are likely to follow here in the hospitality sector. Nearly all the big hospitality brands have set their eyes on the Coimbatore market which promises to strengthen the market for hotels and, in turn, help the local economy grow even further.

The demographic pattern, social outlook and economic cycle are also changing fast in the city. Facts speak for themselves. Coimbatore has several engineering colleges and Universities, the Tidel Park, etc. The city has a good mix of consumers and creation of more quality hotel projects is the need of the hour. This is the time for second-tier development of hospitality sector in the city after a couple of big hotels have strengthened their presence.

Many analysts believe the growth of hospitality in this country now onwards is actually in the tier-two cities like Coimbatore. A number of international visitors come here and several major and even small scale companies in this region have overseas contacts. Many of the foreign visitors who come to Tirupur, Karur and Erode, stay in Bangalore and Chennai. Given the quality hotel stay, they would prefer to stay in the city while on business trip.

This raises a fundamental question as to why the developers have not forayed into hospitality sector in this market even though Coimbatore has shaped up well as a business destination. The developers cite their own reasons ranging from the policies of the state government, to opportunity cost and hurdles in the clearances as compared to the residential projects.

R.S. Krishnan, Head-Operations-Site, Rakindo Developers blames it on the logistical reasons. According to him, Coimbatore has major infrastructure shortcomings. Lack of power, proper roads and scarcity of water makes it unattractive for major developments. The fallout and decline of the textile and hosiery business (closure of dyeing units) have resulted in the negative growth of this city. Most of the existing hospitality start-ups have all failed. Hence, Coimbatore is a strict no-no destination for hospitality.

“Despite being the second largest city in Tamil Nadu, lack of political will and lack of political impetus on the part of successive governments has left Coimbatore lagging behind on several fronts making it almost impossible for any developer to foray into hospitality. Participation of national and international hotel chains is the only option that could prove beneficial to the hospitality sector as the industry itself has proven that stand-alone hotels are not successful business options,” says Krishnan.

A section of the developers suggest the government to make the hospitality foray more attractive from execution standpoint since the opportunity cost is high and the gestation period is too long. They suggest either single window clearance for the hospitality projects or fast tracking approvals and clearances, special status given to hospitality projects and development of supporting facilities like roads, infrastructure, power and water to make the project sustainable.

Beyond these teething issues lies the fact that Coimbatore is poised to grow on the hospitality map of India. The way the city is growing with its vibrant economy, it is quite natural that the big hospital chains would like to tap the potential of the Coimbatore economy. A few years back, hotels with facilities like a ball room, an exclusive spa and health club, multi cuisine restaurants, imported chandeliers from Italy etc were unheard of in this part of the world. Today, some of the upcoming hospitality groups are clubbing entertainment centres with the hotel itself.

Analysts maintain the very economy of Coimbatore is such that MICE (Meetings, Incentives, Conferences and Exhibition) segment can be catalysed with the policy incentives which will further ignite the economy of the city. They suggest it is time Coimbatore should be promoted as tourism destination, something that will attract developers from other big cities to invest in the city. After all, the land cost and overall opportunity cost is pretty low when compared with the other markets.

It is true that the developers have thus far resisted investing into high capital intensive hotel projects. But many of the big ticket developers are also realising that there lies a big market in the segment of urban resort. They are hence in talks with the big chain of hospitality brands for a possible tie-up. Of course, there is a cost-benefit analysis that prohibits the developers to jump into a new segment, yet the potential is so huge that sooner or later many of them will weigh their options in favour of a foray into the hospitality sector.

Hospitality to add wings to Noida as corporate city

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Starwood Hotels, Sheraton, Bangalore, Brigade Gateway, Bangalore Real estate news, realty news india, india real estate news, track2media, track2realty, ravi sinhaTrack2Realty Exclusive: Critics who had till very recently criticised the projection of Noida as a corporate city on the grounds that the city lacks commercial activity and an international airport may soon have reasons enough to eat their own words. Scaling up from just being an affordable destination the seemingly poor cousin of Delhi-NCR is today giving its superior peer markets a tough competition in its march to emerge as a landmark corporate hub.

Noida can now boast of luxury and ultra luxury projects, quality office spaces, high end retail spaces in the making and, hold your breath, some of the best hospitality chains redefining the market to a new identity.

Noida is finally getting the attention that it deserves and corporate, leisure and lifestyle option are increasingly making inroads in the city. The city is witness to an interesting phase of corporate evolution where the best of international hotel chains are looking up to this market with renewed interest and most of the developers are either offering their services to these hotel chains or are themselves foraying into full-fledged hospitality business.

While there are already few established operators in midscale and upscale hotel business in the market, a lot of new development that is coming in this segment seems to change the market dynamics altogether. Analysts are hence curious whether Noida is on its way to emerge as India’s Las Vegas in the time to come.

Facts speak for themselves. Hospitality giants like Marriot Hotels, Accor, Renision Courtyard, Sheraton, Four Seasons, Westin Resort, The Lalit Grand, Grand Hyatt all have entered into this market with grand plans. Among the developers right from Brys Group to Supertech and 3C Company to Jaypee Group, it seems all the established developers in the market today endeavour to scale up their market presence and brand positioning with foray into hospitality. As a result, Noida and Greater Noida will have additional more than 4000 rooms by the year 2015, as per a Cushman & Wakefield report.

This raises a fundamental question as to whether Noida will give a tough competition to the established hospitality locations of Delhi-NCR. Analysts tracking the local economy suggest that Noida will not eat into Delhi or Gurgaon market; rather it is going to be accommodation of enhanced demand than stealing from the other. This market is poised to attract some of the new streams of business for the regional economy.

For example, the upcoming hotels in Noida that are getting developed on the expressway are expected to get accommodation or occupancy by tapping into the Agra market as well. Agra will cater and remain a large incentives and meeting markets and this has the potential to gradually shift the tourism market to Noida and Greater Noida. The larger chunk will nevertheless remain to be the commercial market.

Navneet Gaur, Director, Brys Group does not find it surprising that hospitality is the in-thing in Noida, citing reasons from quest for luxury in the city to investors’ interest level and the emerging corporate expansion in the city. According to her, hospitality and real estate have historically shared a symbiotic relation where the real estate players are the ones to create infrastructure and the hospitality chains do manage it at the operational level. However, in Noida the rules of the game are changing and the developers nowadays want to themselves create a sub-brand in hospitality with a business serious plan in mind.

“I would say just two factors, luxury and commerce, has changed the outlook of the city and it is time Noida finally emerges out of the shadow of a low cost market. Emergence of luxury residential property is a great traction point. Moreover, the way multinational companies are increasingly setting up their bases in the city the MICE segment (Meetings, Incentives, Conferences, Exhibitions) is all set to grow. Once this happens, both inbound and outbound leisure trips will also be in demand. It is precisely this market reality that we as developers want to establish our hospitality vertical as a serious business here,” says Gaur.

Nikhil Hawelia, Managing Director of Hawelia Group also believes that the way Noida is growing the demand may exceed supply even with the projected figure of fresh supply by the next year. He, however, is not sure about the feasibility of developers running the hospitality chains themselves. According to him, the developers in the city must provide the best of infrastructure for the hotels and then hire the best of hospitality chains to catalyst the emergence of Noida as a professional city altogether.

“If only an international airport comes up in the vicinity of Noida (even Dadri) there is no reason why Noida cannot shape up not only as India’s best corporate city but can also be India’s answer to Las Vegas. With an inherent potential to emerge as the best corporate destination, added with the best of infrastructure, Noida has waited for long to have a trigger point that could change the outlook and collective consciousness about Noida. I feel the entry of big ticket hospitality chains have proved to be that catalytic force,” says Hawelia.

Karan Sahoo, Head of Marketing with ATS Group finds the growth of hospitality to have a result of corporate entry in the city. Terming it a conscious decision of the developers to make the city ideal for corporate culture, he points out that with the up-gradation of infrastructural facilities like roads, highways, uninterrupted power supply and business friendly policies Noida-Greater Noida is likely to emerge as commercial and manufacturing destination for leading national and multinational companies.

“Hospitality being a service industry in itself will further enhance the development of such business clusters. Even if Noida does not have an international airport, in the long-term perspective, Noida-Greater Noida business cluster will automatically attract attention to develop an efficient means of communication in Delhi NCR and decongest the existing hubs,” says Sahoo.

Even within the Noida city the pockets of hospitality growth is emerging fast and it seems the hospitality giants have already zeroed in on the locations that suit their hotel business. The area around Sectors 15 and 16 in Noida has emerged as the ideal choice for international hospitality giants such as Renision Courtyard, Sheraton and Four Seasons.

Analysts believe the way Noida has suddenly started attracting the interest level of the corporate sector and the multinational companies there are certain pockets that will establish their claim as the Central Business Districts (CBDs) of the city. Similarly, the Secondary Business Districts are also emerging out of the advent of corporate and hospitality, of late.

Industry estimates suggest that for quite some time there was only one claimant in Atta Market, that is Sector 18, to be called the CBD of Noida. But then Sector 32 also emerged well in due course of time and now Sector 62 is also shaping up well. Then, the sectors along the Noida-Greater Noida Expressway are an ideal haven for the commercial activities and the growth of hotel business.

Moreover, the Taj Expressway connectivity to Greater Noida is all set to boost the entire stretch and the region is poised to get all round developed fairly well. With the Taj Expressway connectivity and with some spurt of tourism, Noida will not be just the centre of commercial activity in terms of office space accommodation but hotels will be among the major gainer to flourish in the entire region.

CAIT calls for Bharat Bandh on 20th Sep to protest FDI in retail

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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, Bangalore Real Estate news, bangalore news, bangalore municipal corporation newsTo protest against the decision of the Union Government to allow FDI in multi-brand retail, the Confederation of All India Traders(CAIT) and Bharat Udyog Vyapar Mandal have called for a Bharat Trade Bandh on 20th September,2012 in which they claim that about 5 crore traders and more than 10 thousand trade associations across the Country will participate.The Traders have appealed all national and regional political parties to extend their support to Bharat Trade Bandh call.

All commercial activities across the Country have been claimed to remain standstill on the day. The National Hawkers Federation and other organisations have supported the Bandh call.

Praveen Khandelwal, Secretary General of CAIT and Shyam Behari Mishra, President of Bharat Udyog Vyapar Mandal at a Press Conference held on Saturday, Sep15, at New Delhi while making the joint announcement regretted that on such an important issue concerning the national economy, the government did not consult the traders and other stakeholders of the retail trade whereas in the last session of the Parliament the then Finance Minister Pranab Mukherjee categorically assured on the floor of the house that FDI in retail will be implemented only after attaining unanimity.

The government has not taken any cognisance of his solemn assurance, they regretted. According to them it is highly deplorable that not only the opposition parties but even the allies of the UPA remain vocal against FDI in Retail Trade which has been overlooked by the government. They further said that even the unanimous recommendations of the Parliamentary Standing Committee were brushed aside.

The trade leaders said that the decision of the government will adversely impact the national economy and retail trade of India. Not only the traders but even the farmers, labourers, hawkers,transporters and other sectors of the retail trade will be hit hard which will culminate into mass unemployment and steep inflation. It will provide ample opportunities to the MNC’s to control and dominate the retail trade .

They reminded that such situation has already developed in US, Australia and Europeon Countries where the global giants have virtual control on the retail trade. They said that nearly 5 crore traders engaged in retail trade and more than 22 crore people dependent upon retail sector for their livelihood will be badly affected.

The Trade Leaders said that trading community of the Country will oppose this decision tooth and nail across the Country. To finalise the future course of action, the CAIT has called an emergent meeting of its National Council on 21st September at Vrindavan. They categorically said that in order to protect our interest, if traders have to convert themselves into a Vote Bank, they will not leg behind.

ASK partners with Sushil Mantri in a residential project in Bengaluru

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Affinity, Pashmina Developers, ASK Investment, Bangalore real estate news, india real estate news, property news india, track2media, track2realty, ravi sinhaASK Property Investment Advisors (ASKPIA), the real-estate private equity arm of ASK Group announced on Wednesday, Sep 12, an investment in an affordable luxury residential project in the heart of Bengaluru city. The project which is around Rs.450 crore, is located in central Bengaluru’s prime area opposite the 240 acre Lalbagh green space. ASK Fund’s investment will be to the tune of Rs. 100 crores in the Special Purpose Vehicle set up for executing this project.

Speaking about this investment, Sushil Mantri, Chairman of Mantri Developers said, “This is one of the few developments being undertaken in the heart of the city. Given our experience and brand we are confident of delivering a high quality product that would appeal to the preference of the customers. This second partnership with ASK group would enable us to execute such projects with agility, which is our strength”

Sunil Rohokale, CEO and MD, ASK Investment Holdings said, “This is our second investment with Sushil Mantri group and we are committed to multiple partnerships with our existing partners. We are bullish on the outlook of Bengaluru real estate market which is a stable market due to constant job creation.”

Amit Bhagat, CEO and MD, ASK Property Investment Advisors said, “The prime project location coupled with Mantri brand and strong project delivery team should ensure that our investors get superior risk adjusted returns from this investment. The quick absorption in city-centric projects with reputed brands will yield higher returns to the Fund.”

ASK Group, which has emerged as a leading player in the Real estate Fund business manages domestic real estate funds of more than Rs 1,300 cr. This investment is a part of Rs 1,000 crore raised through the ‘ASK Real Estate Special Opportunities Fund’ in 2012. The Fund has already made two investments in past in Mumbai with Rajesh Builders and Godrej Properties. This is their first investment in Bengaluru.

Odisha Government moots rental housing for poor to check mushrooming slums

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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, Bangalore Real Estate news, Jaithirth RaoIn a bid to check the mushrooming growth of slums in the state, the Odisha government is planning to create rental housing at an affordable monthly rent of up to Rs 2,000 for the poor.

The recently announced Scheme for Affordable Urban Housing in Odisha-2012 has enunciated that the government shall provide land to the urban local bodies (ULBs) for creation of such housing blocks.

The scheme proposes government will create two types of rental houses. Those for the economically weaker section (EWS) will be offered for maximum rent of Rs 1,250 per month. The houses for low income group (LIG) will be available at Rs 2,000 per month. The civic agencies concerned will revise the rent from time to time.

The civic bodies will deploy private developers to create such houses with infrastructure such as water supply, electricity, sewerage and solid waste management on land provided by the government at a concessional cost.

The government will allot the rental houses to the identified below poverty line (BPL), EWS, LIG beneficiaries for a maximum period of one year. The government has kept benchmark of income up to Rs 7,500 per month as EWS and Rs 7,501 to Rs 15,000 as LIG. The civic bodies concerned will get 25 per cent of the rent collected to maintain the housing blocks.

Apart from rental blocks, the government aims to create 1 lakh affordable dwelling units in the cost range of Rs 7.5 lakh to Rs 15 lakh in 10 years for the poor. Odisha State Housing Board (OSHB) will act as the state level nodal agency for implementation of the scheme, notified by the housing and urban development department recently.

To promote affordable housing, the government has decided to reserve 20 per cent of developed land earmarked for residential purposes in the city development plan for houses under EWS, LIG and lower middle income group (those having income from Rs 15001 to Rs 20,000 per month) categories. All private developers have to reserve 15 per cent units for EWS and LIG housing in plots exceeding 2000 sq meters.

The government will give 100 per cent stamp duty exemption to EWS and LIG houses and 50 per cent to LMIG houses. Besides, the ULBs will give concession in holding tax.

The government has floated three models for developing affordable houses.

Under model 1, all Odisha State Housing Board (OSHB) housing schemes shall earmark at least 60 per cent of the total built-up area for EWS, LIG, LMIG and MIG (middle income group having income from Rs 20001 to Rs 25,000) housing, 15 per cent for each category. In return, the board will get government land at concessional rate.

Under Model 2, any private developer intending to build EWS and LIG dwelling units beyond the mandatory provision of 15% of built-up area can participate under voluntary development plan on private land through competitive bidding. Builders of such projects have to reserve 60 per cent of the built-up area for EWS, LIG, LMIG and MIG housing. In exchange, they will be allowed to use the unreserved portion to commercial usage. There will be no height restriction on such constructions.

Under Model 3, government land will be identified for allotment to private developer for construction of EWS and LIG housing through competitive bidding. At least 75% of dwelling units of such projects shall be utilized for EWS and LIG housing. The developer shall be free to use the balance area in any manner subject to building regulations.

Government plans to roll out the scheme in six cities covered under Rajiv Awas Yojna of Bhubaneswar, Cuttack, Berhampur, Sambalpur, Rourkela and Puri besides Jharsuguda, Jajpur, Kalinganagar, Angul, Balasore and Paradeep in the first phase.

The scheme has evoked mixed reaction from the builders. “It is overall a very good scheme. The stamp duty exemption on EWS housing will boost creation of such houses. Rental blocks will prevent growth of slums,” said DS Tripathy, Odisha head of Confederation of Real Estate Developers’ Associations of India (CREDAI).

Real Estate Developers Association of Odisha president Pradipta Biswasray, however, said the policy should have more clarity. “It speaks about rental blocks. But details of how the programme will be implemented is not clear,” Biswasray said.

Realty sector wants industry status in Union Budget

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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, Bangalore Real Estate news, Jaithirth RaoProperty consultants and real estate developers have demanded industry status to the realty sector in the forthcoming Budget.

They have also sought incentives to promote affordable housing segment and an increase in the tax exemption on home loans.

To boost supply, they have also asked for a single-window clearance for real estate development projects and FDI in multi-brand retail to create demand for retail space in shopping malls.

“Grant industry status to real estate, since the sector is a major driver for economic growth and generates countless jobs across its various verticals and associated industries,” Global Property Consultant Jones Lang LaSalle India Chairman and Country Head Anuj Puri said.

He also pitched for relaxing norms for repatriation of FDI in real estate to attract more investment in the sector.

One per cent interest rate subsidy provided by the government for loans towards affordable housing should be “amplified and broadened” to include a wider price band of budget housing to benefit home buyers.

Expressing similar views, another property consultant DTZ said that the ceiling of housing loans eligible to priority sector lending should be raised in view of high property rate.

That apart, DTZ suggested increase in tax exemption on home loans to stimulate end user demand, particularly for mid-range housing.

“Principal repayments should be treated as a separate tax exemption entity and excluded from benefits under section 80C… Deductions towards the total interest payable on the home loan should also be increased from existing cap of Rs 1.5 lakh,” it added.

Currently, an individual is entitled to claim both the interest and principal components of home loan repayments for tax benefits. The ceiling under tax benefits is capped at Rs 1.5 lakh towards the total interest payable on the home loan and Rs 1 lakh for principal paid.

Confederation of Real Estate Developers’ Associations of India (CREDAI) requested the government to incentivise affordable housing segment and address the issue of high land cost and taxation issues.

“The prices of houses in urban areas are becoming unaffordable by the day under the onslaught of high land prices, rising cost of construction and high taxation… We would like the FM to re-introduce some measure like the erstwhile 80I(B) to give tax exemption for affordable housing,” CREDAI NCR President Pankaj Bajaj said.

Hyatt Introduces Hyatt House in India with agreement for hotel in Mumbai

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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, Bangalore real estate news, bangalore hospitality news, Hyderabad real estate news, hyderabad hospitality news, chennai real estate news, kerala real estate news, kerala hospitality news, chennai hospitality newsHyatt Hotels Corporation has introduced its new Hyatt House extended-stay brand in India, with the signing of a management agreement by a Hyatt affiliate for a hotel in Mumbai. The company also announced that Hyatt affiliates signed management agreements for an additional seven full-service hotels and 14 select-service hotels in India, bringing the total number of announced Hyatt-branded hotels under development in India to 53.

Hyatt House Mumbai will be located near Mumbai’s most vital commercial and industrial districts and within close proximately of Chhatrapati Shivaji International Airport. The hotel will feature 170 guestrooms, a multi-cuisine restaurant and bar, and meeting rooms, as well as a business center, fitness center and swimming pool. The Hyatt House concept, unveiled in September 2011, is rooted in extensive consumer research and offers casual hospitality in a smartly designed, high-tech and contemporary environment.

“The introduction of Hyatt House in India, combined with our decision to make India the first location outside of the U.S. for our Hyatt Place brand, reflects our commitment to offering our extended-stay and select-service brands in one of the world’s fastest-growing markets,” said Steve Haggerty, global head of real estate and development, Hyatt Hotels Corporation, who is participating as a panelist at the Hotel Investment Forum India (HIFI) conference taking place January 11-13, 2012.

“We are leveraging our more than 30-year experience in India to become the most preferred hospitality brand for a growing number of affluent, domestic travelers within the country. Guests will soon be able to enjoy our full portfolio of brands in many of India’s most popular business and leisure markets,” he said.

India Critical to Global Expansion
The introduction of Hyatt House signals the company’s continued growth in India. In addition to Hyatt House Mumbai, signed agreements cover five additional Hyatt brands: two Andaz hotels in Jaipur and Delhi; one Hyatt hotel in Raipur; 14 Hyatt Place hotels in Chakan, Delhi, Gurgaon (2), Goa, Hampi, Hyderabad, Jamshedpur, Kochi, Mohali, Munnar, Nashik, Sriperumbudur, and Thiruvananthapuram; three Hyatt Regency hotels in Raipur, Hyderabad and Neemrana; and two Park Hyatt hotels in Delhi and Jaipur.

Hyatt plans to open six new hotels in India in 2012 across its Park Hyatt, Hyatt and Hyatt Place brands. The six properties planned to open in India this year include:

Park Hyatt Hyderabad, a 209-room property with 42 serviced apartments that is scheduled to open in the first quarter, will be located on Banjara Hills nearby the scenic Hussain Sagar Lake and in close proximity to Hyderabad International Airport. The hotel will offer three food and beverage outlets, banquet and conference facilities, and recreational offerings, including a spa, fitness center, and retail space.

Park Hyatt Chennai, a 204-room hotel set to open by mid-year, will be situated in the capital city of the state of Tamil Nadu. The property will offer food and beverage outlets, banquet and conference rooms, and recreational facilities, including a spa, fitness center, and retail space.

Hyatt Raipur, a 104-room property set to open by the fourth quarter of this year, will be located in a new retail and office complex in the state of Chhattisgarh’s capital city and commercial hub. The hotel will feature a multi-cuisine restaurant and bar, ballroom and meeting space, as well as a business center, fitness center, and swimming pool.

Hyatt Place Hampi, a 116-room hotel planned to open in the third quarter, will be situated nearby the Bellary industrial district. Hampi, which features spectacular views of the Sandur ranges and is home to a group of monuments classified as a UNESCO World Heritage site, also serves as a popular leisure destination. The property will include a multi-cuisine restaurant, meeting rooms, and a fitness center, and swimming pool.

Hyatt Place Pune, Hinjewadi, a 117-room property set to open in the third quarter, will be located within the Rajiv Gandhi Infotech Park at Hinjewadi, a prominent software hub. The hotel will feature a multi-cuisine restaurant and meeting space, as well as a business center, fitness center, and swimming pool.

Hyatt Place Bangalore, Whitefield, a 200-room hotel scheduled to open in the fourth quarter, will be part of a mixed use development on Whitefield Road in Banaglore’s IT Corridor, which houses some of city’s largest technology and real estate developers. The property will include a restaurant, meeting space, and a fitness center.

“We are focused on creating preference by enhancing distribution of our full-service, extended-stay and select service brands in both new and established markets in India where our guests are increasingly travelling,” said Ratnesh Verma, Senior Vice President of real estate and development for Hyatt Hotels & Resorts in Asia. “Creating a strong presence in India with our complete brand portfolio is critical to Hyatt’s leadership in the global hospitality sector.”

With 53 hotels under development in India, Hyatt currently plans to offer its full portfolio of brands, including:

16 Hyatt Regency hotels under development, in addition to five already open 4 Grand Hyatt hotels under development, in addition to two already open 6 Park Hyatt hotels under development, in addition to one already open 23 Hyatt Place hotels under development 2 Andaz hotels under development 1 Hyatt House hotel under development 1 Hyatt hotel under development.

As part of this expansion, Hyatt is seeking to attract and develop high-quality talent in India in order to drive future growth. Currently, more than 3,500 associates are employed at Hyatt hotels in India, and with the development effort, it is expected that more than 7,000 new associates will be welcomed into the Hyatt family. Hyatt is investing in training curriculums and accelerated leadership programs in order to ensure that new associates support the company’s mission to deliver authentic hospitality and to develop new professional opportunities for its associates.

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