Indian Property News on 'August, 2007'

Chennai Retail Sector Set to Boom

Mall culture in Chennai is all set to exert its full allure, with over 20 glitzy shopping malls planned to come up in the next three years. Some notable upcoming retail projects in the city are to be introduced by reputed builders such as DLF, Shriram Properties, and Prestige Group.

Bangalore based Prestige Group has plans to build a second Forum mall in the city’s artery, Mount Road. The group has recently completed a Forum Mall at Vadapalani in Chennai, in a joint venture with Vijaya Group. Spread over 17 lakh square feet, the mall involves an investment of Rs 350 crore. Read More »

A 225 sq ft house in Dharavi to cost Rs 9 Lakh!!!

Asia’s largest slum Dharavi is seeing a sharp appreciation in its property prices since Rs 9,250 crore plan has been intended for its re-development.  A one-bedroom-hall-kitchen (BHK) house in the congested by lanes of Dharavi is to fetch the same prices as been commanded by an exclusive house in Kandivli or Borvli.

Property prices in Dharavi are believed to have increased by 30-40% in the last couple of months. Surprisingly, the cheapest price range for residential property in Dharavi is starting from Rs 4,000 per sq ft. This means that a 225 sq ft house, in the area would come at a prohibitive Rs 9 lakh. Read More »

HIREF Gets Long Term Institutional Investors

HIREF, the first sponsored international real estate fund by HDFC, gets long term institutional investors to invest a whopping $800 million. Of total amount, $50 million has been put by the HDFC Bank itself.

The fund looks at investing in foreign direct investment (FDI) compliant real estate projects in India to accomplish appreciation in long-term capital, says Renu Sud Karnad, Chairperson of the HDFC Property Ventures Ltd. Read More »

Phoenix Mills Plans Foray into Hospitality Sector

Atul Ruia, owner of the fast-developing Phoenix Mills Ltd. in Mumbai, plans to carve out a substantial niche in Indian hospitality sector with six hotels in Mumbai, Pune, Chennai, Bangalore, and Agra over the next five years.

Of these proposed hotels, the first will come up at the Phoenix Mills property at Worli in Central Mumbai. It would be developed as a 400 key luxury hotel over an area of 430,000 lakh sq ft and is likely to be ready by2009-end. Read More »

BMC Approves to Revise the Mumbai Development Plan

Mumbai Development Plan is put on hold and will be released after revising it thoroughly. A high powered BMC committee has approved a proposal to revise the existing plan for the city.

The Development Plan holds significance as it defines land use patterns in the city and details about different FSI norms for different areas. It is an exercise in planning and therefore remains only on paper.  The plan also contains the terms for schools, colleges, and open spaces for a given populace.

There is a Development Plan currently in force, but the BMC has decided not to wait till 2013 for it to lapse before coming up with a new plan. Following a Bombay High court order in December 2006 asking the BMC to start preparing a new plan well in advance, the civic corporation has decided to start work. Read More »

A Tale of Three Cities to Narrate by Haryana Govt

Haryana Government is planning to develop three more cities like Gurgaon in proximity to South Delhi. These new cities will come up in range of 60 km from Delhi with the closest being the Jahangirpuri – Badli.

Experts believe that a newly developed place should always enjoy a strategic location which certainly plays a critical role in adding to its popularity. The best example to prove the statement is Gurgaon located in the capital’s proximity. The same factor can be used to explain why Gurgaon is always more preferred over other developing cities such as Faridabad. Read More »

Gurgaon on Track to become a Major SEZ HUB

With 52 Special Economic Zones to come up in Gurgaon, this cyber town is all set to become a major SEZ hub. Around 34% of the agricultural land in Gurgaon will be utilized by these duty free enclaves which boast to generate a huge plethora of job opportunities. Not all of these SEZs will be spread over a large area.

Of total 52 SEZs, only five will be developed as multi-product enclave whereas 36 will cater to IT/ITes. There will be four bio-tech SEZs and three SEZs in the categories of textile and jewellery. Read More »

NRIs Can Now Save Tax On Homes Bought Abroad

The tax rate on long-term capital gains earned on sale of property is 20%. In case, the value goes over Rs 10 lakh, the tax rate increases to 22.66%. The rule remains same for both Non Resident Indians (NRIs) and India residents.

Serving as a savior, Section 54 of the Income Tax Act exempts those capital gains which are invested in a residential house within a year before to two years after the sale. In case, an investor wants to build a house, the time limit is increased to within three years of the date of sale. Read More »

Oberoi Plans Rs 4,500 Cr for Hospitality Projects in India

The Oberoi Group of Hotels is planning to invest Rs 4,500 crore in new hotel projects for 60% capacity augmentation in national as well as international market. The plans are to take place over the next five to six years.

Of the total investment, EIH Ltd, the flagship company of the Oberoi Group, will contribute Rs 1,000 crore whereas the rest will come from borrowings and partners. The number of rooms during the period would increase to 6,800 rooms from the present 4,100 rooms. Read More »

Middle-Income Homes to Get Economical

Private Developers buying land from the Delhi Development Authority (DDA), or any individual holding government land in the National Capital Region (NCR), will have to now reserve a portion of the floor area ratio to construct houses for middle-income families, according to the plans of the Ministry of Urban Development.

The floor area ratio has not yet been decided, says an official. The ministry has already made it compulsory for private builders to reserve 15% of the floor area ratio and 35% of houses built for economically weaker section, if they acquire land from any government agency. In case, developers try to violate the rule, they have to return 35% of the apartments or the occupied 15% of the floor area ratio to the government agency. Read More »