Latest Property News on 'Chandigarh'

IFC in Discussion with Real Estate Developers to Create Large Affordable Housing Projects

The International Finance Corporation is in talks with several real estate developers to create large affordable housing projects in India. “IFC has been talking with everybody; there have been discussions with the Tatas and with other corporate groups on this,” said Mr Paolo Martelli, Director, South Asia, IFC. “Everybody” includes both real estate developers and housing finance companies, he said.

“We are working on this and we hope one of these projects will be developed in the next six months,” he said. If the estimated housing deficit in India is 25 million units, then such a large requirement cannot be tackled completely from a real estate point of view, according to Mr Martelli. IFC can help the Indian sector with advice on how affordable housing has been tackled in other countries such as Mexico where “literally, they are building cities at a time, 15,000 to 20,000 homes, costing between $7,000 to $15,000”. (The Corporation is also in talks with home builder Homex in Mexico for such projects here in India.) Read More »

Zuri Group Looking at an Investment of Rs 1,200 crore to Expand its Presence in Hotel Industry

Zuri Group Global, the multinational conglomerate, has chalked out a multi-pronged expansion approach for its hotel chain, Zuri Hotels and Resorts, in India and abroad over the next five years. The company is looking at an investment of Rs 1,200 crore in the hospitality sector to set up its own brands and take up management contracts as part of its strategy to increase the number of wholly-owned properties.

The management contract model will allow Zuri to rapidly build a presence in more cities around the world, Priti Chand, assistant vice-president, PR and Corporate Communications, said. Chand said the company intends to set up at least 10-15 projects under the management contract models in cities, such as Hyderabad, Chennai, Mysore, Kochi, while the owned projects will be coming up at Bangalore, Nairobi and in West Asia in the next two years. The company is in advanced stage of discussions with various private owners for management of these hotels, she added. Read More »

Property Oversupply can Lead to another Real Estate Bubble

With India’s real estate market brimming with new launches, investors need to exercise caution while choosing projects. Leading private equity investor Gaurav Dalmia , founder chairman of realty-focussed Landmark Holdings that is investing $225 million in specific projects, feels speculative buying can act as a downtrend. In an interview Dalmia tells why he feels some pockets of real estate market may tumble in the coming months.

Developers continue with new projects even as prices remain high. Do you see demand taking a dip? Read More »

Unitech Ends Joint Venture with Mumbai-based Omkar Realtors Developers

Unitech Ltd, India’s No. 2 realtor by market capitalisation, is completely exiting Unitech Omkar, its joint venture with Mumbai-based Omkar Realtors Developers, DNA has reported, citing sources close to the development.
Though the venture had fallen apart in May, the partners were believed to have decided to continue the projects launched by the company as individual special purpose vehicles (SPVs).

Now, sources said, Omkar will pay off Unitech the Rs 250 crore or so it had brought to the JV and some more, and undertake development of the project on its own, the report said. The 50:50 JV had planned to undertake development of 10 million sq ft in the next three years.
In May, while separating, the two partners had decided to complete the 1 million sq ft of launched projects together as SPVs.
Read More »

Relaince (ADAG) Set to Finalise Deal with Universal to Build $1.5 Billion Theme Park

The Reliance-Anil Dhirubhai Ambani Group (R-ADAG) is close to a deal with Universal Studios of the US to build a $1.5-billion, 400-acre theme park and resort. The company is scouting for locations at Mumbai and Delhi.

According to a report published in Business Standard, Reliance Big Entertainment and Universal, a unit of General Electric’s NBC Universal, could reach a deal this year. The talks have been on for over three months, while land is being looked for already.
Read More »

HDIL Announces Q1 Results- Reports 52.26% Rise in Revenues

New Delhi Housing Development and Infrastructure Limited (HDIL), a leading real estate developer has announced its results for Q1 ended 30th June 2010. The Turnover stands at Rs. 450.92 crores and PAT available for appropriation is Rs. 234.31 crores. Commenting on the results, Sarang Wadhawan, Managing Director of HDIL said “We are very pleased to report strong financial results including a significant percentage rise in revenues by 52.26% compared to the same quarter of the previous financial year.”

Wadhawan further added, “The Indian economy and realty market are projected to grow favorably, thereby providing us with the opportunity to further expand and consolidate our presence in the real estate market.” HDIL plans to launch four to six million square feet of residential projects in the current financial year. Phase 1 of Mumbai International Airport Slum Rehabilitation project, a Vital Public Project, is on schedule. HDIL launches ‘The Meadows’ at Goregaon, 75% of the project sold off in the first week. Read More »

Emaar MGF to Set off IPO Process for the 3rd Time

Real estate company Emaar MGF will soon set off an initial public offering ( IPO) process for a third time in as many years, probably at a valuation one-fourths of what it hoped for in 2008. It’s preparing a prospectus with plans to sell 10% of the company for Rs 1,500 crore from the Rs 7,000 crore it aimed for in 2008, when the market began to melt forcing it to abandon roadshows.
It may seek regulatory approval by the month-end, said two people familiar with the plans. A company spokesman declined comment. The joint venture between the Dubai-based Emaar and auto lender MGF has been at the receiving end of the market for nearly three years, forcing it to trim valuations while rivals such as DLF managed to raise funds at record valuations.

The second time, when it planned to raise funds after an 81% rally in stocks in 2009, investors shunned the sector due to what they perceived to be unreasonable valuations, given the supply glut and sharp jump in home prices that may be unsustainable. Real estate has underperformed the broader market, including DLF which is at Rs 301.3, down 43% from an IPO price of Rs 525 apiece in 2007. Oberoi Realty, Lodha Developers and BPTP are among the real estate companies waiting to list. “Though sales and prices in real estate have picked up in the past couple of quarters, there’s no defined norm to decide the valuations. Hence, investors are apprehensive to take a fresh exposure,” said Kishor Ostwal, MD of CNI Research. In its second outing, Emaar had planned to raise Rs 3,850 crore, but investors were doubtful about the prospects of the sector, even though the economy is forecast to grow 8.5% a year, near pre-crisis level. Read More »

DLF Records 3.78% Rise in Consolidated Net Profit

Aided by higher sales realisation, India’s largest real estate company DLF Ltd on Wednesday recorded a 3.78 per cent increase in its consolidated net profit for first quarter of the current fiscal at Rs 411 crore. The net profit was Rs 396 crore in the year ago period. According to a DLF statement, the sales and other receipts were up nearly 23 per cent Rs 2,028.53 crore.

The DLF board has also approved issue of equity shares by its wholly owned subsidiary DLF Brands to a promoter group company, subject to shareholders’ approval. Following the approval, DBL will cease to be a subsidiary of DLF. “The move is in line with the strategic objective of DLF to exit the non-core business,” it said, but did not give further details of the transaction. Read More »

Mid-Cap Real Estate Firms Expected to Post Mixed Trend in June quarter

Mid-cap real estate firms are expected to post a mixed trend as spiraling prices hit affordability and new launches tapered in the April-June quarter. A Reuters’ poll of brokerages estimates Anant Raj Industries to post a 47.79 percent fall in net profit, Housing Development and Infrastructure a 49.26 percent rise and IndiaBulls Real Estate a 114.44 percent rise.

“There would be a year-on-year growth, because of the low base (of previous year). Secondly, margins will go down as product mix has changed, with lot of sales happening in mid-income sector, where margins are lower…,” Param Desai, analyst at Angel Broking, told Reuters. Read More »

Real Estate Regulation Act can Increase Housing Prices by Rs 300 per sq ft- CREDAI

The Confederation of Real Estate Developers’ Associations of India has expressed reservations about the proposed Model Real Estate (Regulation of Development) Act in its present form, saying it could lead to an escalation of prices of housing stock in the country by Rs 300 per sq ft. The bill would be placed before Parliament soon.

Terming it a draconian bill aimed at strangulating developers alone, CREDAI vice-president Prakash Challa told reporters on Tuesday, “We are not opposed to having a legislation to regulate the real estate sector. But the proposed legislation, in its present form, would be detrimental for the industry. If the cost of projects go up, the sufferers will be the end customers. Real estate is already an overly regulated sector. The best way to make housing affordable to all is to liberalise the sector by introducing a single window clearance system for projects, clubbed with a rationalized tax system. The very concept of affordable housing will be a failure if cost escalates by roughly Rs 300 per sq ft on account of introduction of the regulatory bill.” Read More »