Tag Archives: Trends

PE Analytics plans to launch Real Estate Index

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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

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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

TCG-Vornado fund to invest Rs 270 crore in NCR, Mumbai projects

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Eldeco Meadows, Real Estate Investment, 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 PropertyIndia Property Fund, managed by NRI investor Purnendu Chatterjee’s TCG Real Estate and US-based Vornado Realty Trust, is in the final stages of investing Rs.270 crore in two residential developments in national capital region and Mumbai.

The fund will invest Rs.150 crore and Rs.120 crore in housing projects in Mumbai and Noida, respectively, and pick up 40-45 per cent in each of the projects, according to the sources close to the development.

“The $ 400 million Fund works with land-owners, state governments and developers (particularly mid-size developers who lack both capital and management talent) to develop international-quality real estate products, which cater to the high demand sectors of the industry. The Fund takes both controlling and minority positions,” says TCG Real Estate’s website.

The Fund also looks at investing in related sectors such as construction, mortgage financing and infrastructure. The Fund invests between $ 5 million to $ 50 million in each investment, the post says. TCG Real Estate is the property development and investment arm of Purnendu Chatterjee’s The Chatterjee Group

Property developers are increasingly turning towards private equity funds for financing their projects as commercial banks have tightened their lending to real estate.

“With fresh lending remaining tight, PE players have started to get busy, as all developers have begun to offer good quality assets to raise project level PE fundings,” say analysts from Enam Securities in a recent report.

Goa property exhibition to showcase 200 projects

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Goa Real estate news, Goa property news, Delhi NCR real estate, Bangalore Real Estate, Track2Media, Track2Realty, ravi sinha, india realty news, india real estate news, real estate news india, realty news india, india property news, property news india, ndtv.com, ndtv, aajtak, zee news, india news, property news, real estate news, 99acres.com, 99 acres, indianrealtynews.com, indianrealestateforum.com, Mumbai Real Estate, India PropertyFor those searching for their home sweet home in Goa, there’s a treat in store this Akshaya Tritaya. Twenty-one property developers and one finance company will come together under one roof to showcase about 200 projects under way across Goa.

An initiative of The Times of India, ‘Times Homes’ will be on exhibition on Friday and Saturday at Hotel Fidalgo. Projects ranging from single-bedroom apartments to penthouses and luxury villas, and ranging in price from 20-25 lakh to several crore will be on display.

Information on housing loan options and how to avail the same will also be available at the exhibition. “It’s a win-win situation for buyers,” says president, Confederation of Real Estate Developers in India (CREDAI), Goa, Nilesh Salkar.

“They can zero in on the best buy for what they are looking for as a dream home and they can even find out about home loans,” he added.

The two-day exhibition will highlight projects in urban areas such as Panaji, Vasco, Margao and Mapusa; fast-growing suburbs like Porvorim and Dona Paula; and idyllic locales of Canacona, Siolim, Pilerne, Old Goa and Calangute among others.

The property developers participating are Horizon Land Developments, Mathias Construction, Milroc, Palacio and Emgee Group, K Raheja Corp, Madkaikar Realtors, Sunteck Kanaka, Sukhthanker Associates, Vision Enterprises, Susheela Homes & Properties, Umiya Group, Highland Constructions, Gera Developments, Crossroads Realtors, Classic Squares, Bharat Developers and Realtors, B&F Realty, Ashray Real Estate Developers, Adwalpalkar’s Constructions, Anand Bose Constructions, and Acron Developers. State Bank of India will provide information on loans.

Tata Housing bags CNBC Awaaz Crisil CREDAI Real Estate Award 2011

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Tata Housing, Ratan Tata, Brotin Banerjee, 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 PropertyTATA Housing Development Co. Ltd. has been awarded CNBC Awaaz Crisil CREDAI Real Estate Award 2011 for Integrated Sub Urban Developer at the 11th National Conference of Confederation of Real Estate Developer’s Association of India in Singapore. The award was handed over by the Minister for Urban Development, Kamal Nath, to the Managing Director & CEO, Brotin Banerjee at a glittering Awards ceremony at Hotel Marina Bay Sands.

Commenting on the achievement, Mr. Brotin Banerjee, CEO & MD, Tata Housing Development Company Limited, said, “At Tata Housing, it’s our constant endeavor to create benchmark projects across all segments on a pan-India level, based on the consumer’s needs and requirement. This Award is a testimony of our success in providing the best in class integrated sustainable projects. We are extremely happy to receive this award and it will strengthen our commitment to create landmark projects across the country.”

The Real Estate Awards recognizes individuals and various corporates whose excellence and achievements have set a benchmark within the industry. The awards also seek to acknowledge the magnificent architecture and intricate interiors of the Indian industry which have gained recognition globally.

CREDAI demands comprehensive real estate law

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Chennai Real estate, CREDAI Chennai, Tidel Park Chennai, IT Parks Tamil Nadu, Tamil Nadu Real Estate, 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 PropertyThe Confederation of Real Estate Developers’ Association of India (CREDAI) demands the proposed law to regulate the development of India’s real estate sector must be comprehensive to address the interests and responsibilities of all stakeholders.

General consensus on these lines was reached by the CREDAI at its 11th national convention in Singapore on Friday. The two-day meeting, inaugurated by Union Urban Development Minister Kamal Nath on Thursday, was presided over by CREDAI Chairman Pradeep Jain and President Lalit Kumar Jain.

In a briefing after the convention, CREDAI Secretary T Chitty Babu said the draft bill, as initiated by the Centre, was now focussed primarily on the responsibilities of the real estate developers. The proposed law should, instead, be “comprehensive in scope,” covering all stakeholders, he emphasised.

Besides the various governments and local authorities with the power to grant approvals for constructions, the other stakeholders were the real estate developers and the buyers of homes and offices plus the agencies in the business of funding projects and purchases. So, it was essential that all these stakeholders must be held accountable under any legislation for the proper administration of the real estate sector, said Chitty Babu.

The CREDAI conference discussed various aspects such as speed and efficiency as also innovation and technology for the modernisation of Indian realty. The construction of the Indira Gandhi International Airport in Delhi as a case study and the making of iconic buildings in other parts of the world also received attention.

Awards were presented by Mr. Kamal Nath to various real estate developers in a number of categories.

Focus on affordable housing at CREDAI Bangalore exhibition

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CREDAI, 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 PropertyThe annual CREDAI Realty Expo organized by the Confederation of Real Estate Developers Associations of India (CREDAI) kicked off on Saturday with hundreds of prospective property buyers thronging the exhibition at Palace Grounds.
This year, the expo has more than 50 leading property developers and a handful of housing financial institutions participating.

Among the prominent builders which participated in the expo are Mantri Developers,  Sobha Developers, Puravankara, and August Ventures. The expo was inaugurated by Bangalore Development Authority Commissioner Bharath Lal Meena. Also present were Sushil Mantri, President CREDAI Karnataka, S Faisal Rizvi, Jt Secretary, CREDAI Karnataka.

Sushil Mantri said that with the recession of 2008-09 well over, the real estate sector in Bangalore was on an upswing again. “Demand for real estate is at an all time high with customers looking for high quality housing”, he said.

He added that both luxury and affordable housing were seeing an upswing, with new projects launched almost one per day.

This year’s expo will continue last year’s focus on affordable housing as the real estate sector has rebounded significantly. The affordable housing segment is targeting prospective home owners who are looking at investing in the range of Rs.20 lakh to Rs.50 lakh.

Property watchers in the city say the affordable housing options seem particularly appealing this year. “I cannot afford to invest in the luxury apartments that are on offer, but the affordable housing options seem particularly attractive. Instead of shelling out a rent of Rs.20,000 every month, it makes more sense for me to purchase a house on a mortgage. At the end of it, I will own a house at least”, said a visitor.

Joshua Samuel, a MNC executive, said he was also interested in some of the affordable housing options, especially on the higher end. “Bangalore is still an affordable city compared to Mumbai or even Delhi. Purchasing a flat here is quite an attractive proposition”, he says.

The expo is being held on a 60,000 square feet air conditioned expo area at Gayatri Vihar, Palace Grounds. Besides offers from developers, the expo will feature financial institutions offering housing loans. There will also be seminars by banks, vaastu experts, and legal experts to answer the queries of prospective home owners.

MARG ProperTies unveils new brand mascot – “Mr. Joy”

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Marg Properties, Mr. Joy, S Ramakrishnan, Delhi NCR real estate, Bangalore Real Estate, Track2Media, Track2Realty, ravi sinha, india realty news, india real estate news, real estate news india, realty news india, india property news, property news india, ndtv.com, ndtv, aajtak, zee news, india news, property news, real estate news, 99acres.com, 99 acres, indianrealtynews.com, indianrealestateforum.com, Mumbai Real Estate, India PropertyMARG Limited, the diversified infrastructure development company has unveiled “Mr. Joy”, the mascot symbolizing a new brand identity for its real estate arm – MARG ProperTies.

The mascot, Joy, has been especially designed to connote to the ‘Home Category’ and at the same time give a look and feel of a male persona that is a manifestation of the core values that MARG ProperTies brand stands for: Customer Friendly and Omni-accessible, Trustworthy, Responsible, Dependable, Caring, Timely and quality delivery Expert advisor.

In essence, Joy will now be the spokesperson for the MARG ProperTies brand. Commenting on this refreshed branding, GRK Reddy, Chairman & Managing Director, MARG Group said, “Mr. Joy, the mascot of MARG ProperTies is an attempt to personify the MARG ProperTies brand and create a better brand connects with our customers. It is our constant endeavor to serve customers better and provide them with the very best available solution tailor made and customized to their requirements. Joy is a manifestation of our desire towards customer delight and represents serious effort on our part to provide unmatched products and services”.

Joy is slated to amplify the MARG ProperTies brand positioning of “Joy of ownership” by creating a distinct platform that helps in better brand recall. In a nutshell, Mr. Joy exemplifies the qualities of a mentor, friend and guide that helps our customers to make the best use of available choices.

Commenting on this new initiative, S Ramakrishnan, CEO, MARG ProperTies said, “Mr. Joy perfectly blends with the brand that is known for its excellence in terms of expertise, delivery and its strong customer-friendly approach that infuses joy in the lives of its customers. The friendly demeanor of the mascot is sure to build strong and instant ties with the target group and would go on to give a shot in the arm to the brand. This is just the beginning of a joyous ride and we hope to enrich and further strengthen our ties with our loyal base of customers.”

The importance of branding in today’s keenly competitive real estate market is paramount. It is the brand that will be a key differentiator. This branding exercise gives MARG ProperTies a unique identity that is instantly recognizable and will help to build ties and bond better with a persona that is easily recognizable and approachable. Mr. Joy is therefore a clear attempt to differentiate the MARG ProperTies brand in the market to achieve a higher recall and brand salience.

Goldsukh forays into real estate business

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Gold sukh, Devendar Sharma, 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.com, Indiabulls real estate, BSE, Bombay Stock Exchange, Mumbai Real Estate, India PropertyThe bullion company, Goldsukh Trade India Limited has now entered into real estate. National Sales head of the company Devendar Sharma declared that the company will provide homes and land to people on EMI’s at very easy terms. He said the company is looking forward to Kashmir for real estate business so people can make their dreams come true.

This was announced during a ceremony here to mark the ‘16th closing’ of the company with 100 per cent profit. Company’s AGM Niraj Kant Sharma said the trust and cooperation of people in Kashmir has enabled it to perform well.

Niraj said the company that had started in Rajasthan in 2008 is now all set to enter the international market.  Its Business Head for North India, Deepak Sharma said the company after securing a strong footing in the metropolitan cities is now penetrating rural and semi-urban markets.

Investment advice: stocks vs. realty vs. realty stocks

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By: Ramesh Nair

Ramesh Nair, West India Managing Director Jones Lang LaSalle India, Track2realty, track2media, india real estate news, realty news india, india property news, real estate news india, india realty news, property news india, 99 acres, 99acres.com, ndtv.com, ndtv, zee news, aajtak, cnn-ibnThe Sensex has always been a barometer of the country’s general economic ‘mood’. The real estate index, on the other hand, is an indicator of the sentiments towards real estate developers. It consists of 11 real estate scrips which – when the index was formed in 2007 – represented approximately 95% of the capitalization of real estate companies in the Sensex.

The BSE Sensex is currently at 18,800 levels, while the realty index is at 2,300 levels. This is in stark contrast to January 2008, when the Sensex was at 21,000 and the BSE Realty Index was at 13,400.  While the Sensex is currently down 10% from its peak, the realty index is down a tremendous 82% from its peak.  However, at the same time, if one had bought an apartment in the peripheries of most of the key Indian cities, its value would have risen by anything between 5-15%.

The real estate market is similar to the stock market, with its peaks and troughs always seeming to make perfect sense in retrospect. Also, both the real estate and the stock market reflect the economy of a country and offer good investment opportunities. However, the risks must be understood along with the opportunities.

Stocks
The profit margin inherent in stock investments has always been higher when compared to other asset classes. Stock market investments offer advantages such as liquidity and flexibility, which real estate does not. Stock prices also offer growth rates that the real estate market can rarely match. Stocks are also relatively easier to acquire and require lower investment to buy, sell and hold as compared to real estate, which has high transaction and other related costs such as broker commissions, legal fees, property taxes, insurance and maintenance costs.

It is also far easier to track stock prices, which are centrally traded, than real estate prices, which change hands in individualized and often opaque transactions. Real estate also requires active management and monitoring.

Real Estate
For most of us, owning an apartment or house is not a matter of owning a financial asset but of settling down and homemaking. Nevertheless, home ownership is also the most primary form of real estate investment. Moreover, unlike stocks, real estate is a tangible asset that provides for greater psychological comfort, security and satisfaction. Also , the ROI for real estate is reasonably consistent because of the phenomenon of property appreciation.

Stock markets are far less predictable, as evidenced by various ‘Black Mondays’ or ‘Black Fridays’ on which the Sensex tanked by between 8-12% of its value in a single day. Though real estate values have certainly slumped in some cities in the last few decades, no real estate market ever dropped by 10% in one day, week or even month. In fact, the Indian real estate slump of 2008 is taking several years to bottom out in most markets. Even if the value of a home drops, the chances of the home owner abandoning for another option are negligible. Factors like the cost of moving, emotional attachment to the location and other ties to the locality such as the children’s school, relatives, neighbours, friends in the vicinity and proximity to the workplace invariably discourage the average home-owner from moving away.

This is in sharp contrast to the stock market, where an investor may decide to trade in his entire stock portfolio in a matter of minutes with just a click. If one buys property and holds it for the long term (7-10 years) one isn’t likely to lose. Real estate values generally go up in the long run, with few exceptions. Fundamentally, the real estate market is a lot less volatile than the stock market.

Real estate investment also offers benefits such as tax deductions on home loan interest, continuous capital appreciation and greater stability. Property historically appreciates in value without many violent downswings. It can be purchased on a down payment of 1/5th of its total value, and the remainder can be financed by a bank. Financial institutions will lend money to a real estate buyer more easily than to stock market investors.

Real estate prices tend to sink far slower than they rise, since property owners are more hesitant to sell in a downturn. Property investment also helps in diversification, hedging inflation and yield enrichment.

Realty Stocks
Realty stocks allow investors to participate in large-scale real estate projects without having to inject massive amounts into non-liquid investments. They also circumvent the inherent complexities of real estate development in the country and give average investors access to a large array of office, retail and hospitality real estate projects which would otherwise be out of their reach.

Moreover, the investor does not have to actively manage any properties. For someone looking for a passive real estate investment with the added benefits of portfolio diversification and liquidity, an investment into a realty stock is certainly a good option. Real estate development companies with realistic projections and predictable incomes are far less volatile than most stocks. However, investors need ensure that the company is professionally managed and that investment decisions taken with circumspection.

To Summarize…
Obviously, there is a direct link between the stock and real estate markets. In an escalating stock market, the profits find real estate the best place for reinvesting funds, leading to escalation in property prices. By the same coin, the gradual collapse of stock markets reflect visibly on real estate markets.

Both markets represent the two major asset classes for growth investing. Both allow investors to participate in long-term appreciation of values. Both asset classes should be included in a balanced investment portfolio depending on the risk-return profile and in-depth understanding of the particular asset class.

The author, Ramesh Nair, is Managing Director – West India, Jones Lang LaSalle India

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