Tag Archives: new delhi

Beyond land use & resource efficiency lies Smart City-II

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India Real Estate News, Real Estate News India, India Property News, India Realty News, Property News India, Realty News India, Connaught Place, New DelhiTrack2Realty Exclusive: What is the level of understanding and willingness among the Indian developers to create smart cities in a country which has been branded as a ‘reluctant urbaniser’ by many international experts?

Shailesh Puranik, Managing Director, Puranik Builders believes an active involvement of the state government and the local bodies is imperative in promoting smart buildings in India. With the government of India launching Energy Conservation Building Code (ECBC) under the National Building Code and Standards for the promotion of green buildings in India, many prominent developers are making efforts to construct smart buildings.

Puranik, however, asserts there are no statistics regarding India’s lagging behind in the global standard. He prefers to talk about the practical problems. “Cost of construction is the major issue for smart buildings. The cost of construction materials is also relatively high. To reduce the initial cost of construction, developers can be provided with various incentives in the form of tax rebates, interest rate subsidies etc. Tax incentives can boost the construction of smart buildings,” he says.

Jennifer Layke, Director of US-based Johnson Controls’ Institute for Building Efficiency seems to agree with this when she says Indian realty has positive outlook but barriers exist across the board.

According to her while India is following the global trend in green buildings, energy management is also ranked higher than many other countries here. She, however, refutes the perception that construction cost is huge issue for mid-size Indian developers in implementing smart buildings.

“I think that one of the things that we have found has actually begun to contradict that there are more expensive buildings as a result of pursuing highly efficient or green buildings. What we have actually found is that through integrated design, we can often bring cost out of the building. In India I think the indication of an interest and the opportunities that are presented and the kind of costing and the policy initiatives that are underway, means that there is tremendous interest in moving forward with energy efficiency and I think the challenge is overcoming those barriers,” says Jennifer.

Sunil Dahiya, Managing Director of Vigneshwara Developers and Sr Vice president of industry body NAREDCO is more candid when he says that the old age real estate has resulted in frustrating the living of today’s consumers. It has been seen that the main reason for divorce today, more than “in-laws”, are pressures of financial/professional and social imbalance. Advocating smart living concepts like SOHO (smart office home office) he suggests smart living can take this load off, by coming upto the expectation off from personal dependency to specialized human resource based delivery model.

“An average young double income group is traveling almost four hours on the road daily and hence after performing eight hours in office actually very less time is left for kids & family. Here, mostly the real estate is the villain in causing that marital discord, not many have realized, actually.  The above imbalance could be bridged by smart living. viz; ‘the real estate should give life to us, than take our lives’. It needs to come upto the expectation of the consumer to take maximum load off their shoulders. Small aspects like, personal availability for courier, grocery, gas, child day-care and receiving the guests and their look-after, etc. Most of the times, the onus to be available for these petty aspects falls on the lady spouse. The imbalance crops in, when the lady wants to enjoy professional freedom and it is interpreted at the cost of compromise from the above expectations,” he says.

…..to be continued

Fitch finds India’s real estate outlook negative for H2 ’12

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fitch ratings, india real estate news, real estate news india, india realty news, realty news india, kumari selja, rohtas goel, Kapil Sibal, sonia gandhi, rahul gandhi, manmohan singh, Unitech, DLF, india property news, property news india, naredco, affordable housing, government of india, ndtv.com, ndtv, zeenews, aajtak, times of india, hindustan times, indian real estate forum, indianrealestateforum.com, indianrealtynews.com, cnn-ibn, rajdeep sardesai, sagarika ghose, vinod dua, arnab goswami, barkha dutt, raghav behl, prannoy roy, vikram chandra, ravi sinha, track2media. track2realty, DDA, delhi real estate news, new delhi, K.P. Singh, Rajiv Singh, Sharad Pawar, Jairam Ramesh, CBI, DB Realty, LavasaFitch Ratings says in a new report that the Rating Outlook for the Indian real estate sector continues to be Negative for H212, due to persistent sluggish demand, high construction costs and liquidity pressures.

Given Reserve Bank of India’s caution on interest rate cuts, high equated monthly instalments (EMIs) will continue to be a deterrent for potential home buyers. This, together with high property prices and elevated inflation will keep demand sluggish.

However, y-o-y growth of home loans by banks – which had been slowing for the 12 months to April 2012 – picked up markedly in May and June 2012, and if continued may help spur the sector.

Slowdown in the economy and subdued job growth in the IT sector, which was at its lowest quarterly level in Q212, will hold back demand for commercial and retail properties.

Real estate companies will continue to face margin compression from high construction costs for both building materials and labour. From December 2011 to April 2012 the price of steel increased 13% and that of cement by 12%. Notwithstanding the trend of deleveraging since Q311, slowing demand, high costs and thus declining profits will keep leverage high for most real estate companies.

Reliance of real estate companies on operating cash flow will assume significance in the near term as available funding options remain limited. Growth of bank lending to the commercial real estate sector was low at 1.5% y-o-y in June 2012. Except for some pick-up in private equity, other funding options are restricted. As a result, companies that derive significant revenue from lease rentals will have a more stable credit profile compared with their counterparts whose business model is based on outright sale.

Hyatt set to bring 3 new brands

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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, steve haggerty, hyatt regency, new delhi, hyatt hotelsChicago-headquartered Hyatt Hotels Group is betting big on the upper-midscale segment in India. Its growth in India is going to be driven by three of its brands — Hyatt Place, Hyatt House and Hyatt Regency. It has already firmed up plans for the first Hyatt Place in the country, likely to be launched at Hampi in Karnataka in June.

The group entered India in 1980 by setting up its first property here, Hyatt Regency. Now, it has a network of 10 hotels. In five years, the hospitality chain aims to expand its footprint five times, with 53 hotels signed up for development across various brands.

 “The development in tier-II and III markets has substantiated the growth opportunities in this segment. We are seeing a lot of growth and traction in the upper mid segment,” said Ratnesh Verma, senior vice-president, real estate and development, Hyatt Hotels.

Some of the group’s projects are running behind schedule. These include Grand Hyatt Pune, being developed by DB Hospitality, Hyatt Place Pune and Park Hyatt Mumbai. While talks are believed to be on for DB Hospitality’s Grand Hyatt Pune, the DB group has denied any such development. The DB group’s Grand Hyatt Goa is facing green hurdles, as the property is within 100 metres of the coastal regulation zone. Recently, the Bombay High Court had turned down an application by the firm challenging a case filed by environment activists. The activists had moved court demanding demolition of the hotel, but the company has denied any wrongdoing.

DB Hospitality, a sister concern of DB Realty, is promoted by Shahid Balwa, who has been embroiled in the 2G spectrum controversy and is out on bail.

“Our relationship with DB has been very effective. Entities globally, not just in India, go through financial restructuring. I guess as a long-term partner, we stand by all those developments, unless there is a compelling reason not to do so, in which case it is a mutual determination. But philosophically, we remain committed to the project as long as they continue to progress,” Verma said. He blamed capital shortage and regulatory issues for project delays.

Hyatt Hotels is going to open 23 Hyatt Place, 16 Hyatt Regency and one Hyatt House by 2015. It is going to launch Hyatt House and Hyatt Place outside the US market for the first time. It is also bringing Hyatt Andaz to India, with the first one coming up in the Delhi International Airport’s hospitality district by 2014.

With the increased supply, the India business is expected to contribute significantly to the company’s global profits. The company operates hotelks through management contracts and does not plan to invest money in the Indian market. “We don’t have the compulsion to put in capital. We are not a real estate company. Our reasons for capital are strategic to launch a brand or gain distribution,” Verma said.

SME has its own brand value to attract realtors

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By: Manu Sharma 

3rd of the series

Track2Realty Exclusive

- 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 In commercial real estate there is a general marketing strategy to showcase brands that book the space. Will SMEs cluster give the developer that cutting edge? Realtors believe most Indian mid-sized companies have already emerged as recognizable brands. Companies such as Gati, Angel Broking, Samsonite, Tarz Lifestyle, Donear and other such companies are well-known; hence it is the facilities that the developer offers take precedence. They are looking for the best value for money; hence there is a pressure on keeping the prices competitive and facilities as attractive as possible.

The question is whether focus on SMEs reflects a negative outlook on the commercial real estate where market has got saturated for the developers. Mayur Shah, Chief-Sales and Marketing, Ackruti City outrightly rejects this theory. According to him the focus is now on every segment of the market, which is holistic and allows a developer to offer a choice of options. Market was never saturated. Absorption took a backseat when the economy was hit and expansion plans were put on hold. In fact in some locations commercial realty has done better than the residential markets. People have realized that to keep the economy growing and their own businesses flourishing, they have to expand and the recent reports on absorption is a reflection of this realization.

“Most of the banking and finance companies started small and have grown only in the last six to seven years, which is a revelation in itself. Some well-known IT companies have grown in size only recently. India has more than 5000 mid- sized companies and at least more than half started their businesses in the metro cities. So SMEs being only in tier II and tier III is a myth. The idea is to offer office spaces at the right locations and offer the right mix of floor spaces and amenities,” says Shah.