Latest Property News on 'Real Estate India'

Moneylenders funding Realty Boom in Hard times

They could be dismissed as a nondescript group of people chatting on the lawns of an exclusive club or strolling down Marine Drive in Mumbai. Their clothes are quiet, their gait without swagger. Indeed, it’s hard to believe that these are the very men who have a vice-like grip over some of the biggest builders in the country. They are India’s wealthiest moneylenders who, even as the banks tighten their belts, loosen their own purse-strings.

With financial institutions and banks increasingly restricting loans to developers, these moneylenders — primarily belonging to the Sindhi, Marwari and Kutchi communities — have stepped in to play their part. Read More »

Real Estate to feel the Heat as Inflation Soars

The recent fate of real estate stocks on the bourses mirrored the first signs of trouble ahead for the industry. Fuel price hike and lower IIP (Index of Industrial Production) numbers were recent setbacks to the sector and now with a 11.05% growth in WPI (wholesale price index), inflation has emerged as a serious threat to the sector, which has been cooling off in recent times.

Market experts predict further softening of prices. “Even though prices have corrected by 10-20% and even beyond in some regions, it has not yet touched the bottom. It is advisable to wait till at least the year-end to buy homes,” says Jai Mavani, real estate practice head, KPMG. Read More »

Rs 8,000 Crore Premium Realty Projects Face Delay

According to industry estimates, around Rs 8,000 crore of real estate projects covering over 40 million square feet are facing delays.

Analysts said the construction cost for large commercial projects was Rs 2,000 per square foot, on average.

In the process, developers are facing huge cost overruns. According to analysts, construction cost is growing 20 per cent every year and the developers are carrying a compounded interest burden of 30 to 40 per cent after three years. Read More »

Langham Hotels forays into India with Wadhwa Developers

Hong Kong-based Langham Hotels International (LHI) is all set to foray into the Indian hospitality segment. It has recently tied up with Mumbai-based real estate developer Wadhwa Developers for the same. The hotel chain entered into a management agreement with the developer for a five-star property being developed in Pune. It will introduce its five-star brand Langham Place Hotel for the same. The property located near Koregaon Park, one of the prime locations in Pune, is slated for operations by 2010 end.

The property will consist of around 180 rooms, a coffee shop and a speciality restaurant. It will also house Chuan Spa, the group’s spa brand. The group will also focus on developing an extensive conferencing facility to cater to the meetings, incentives, conferences and exhibitions (MICE) segment. Read More »

Actis buys Vaishnavi Project Stake

Bangalore-based real estate developer Vaishnavi Infrastructures has received an investment of $25 million from private equity investor Actis for its Rs 350 crore Bangalore project, an investment bank official said.

The proceeds of the investment will fund the construction and development of approximately 925,000 square feet of high-end residential and retail space at Yeshwantpur, a Bangalore suburb. Read More »

Realtors Parsvnath to Expand into Retail

Real estate major Parsvnath Developers Ltd is looking for expansion into retail business, the company chairman said here Friday. “Retail is going to be the next focus area for the company. By the end of this financial year, we will have 5-10 retail stores operational,” Pradeep Jain, chairman of Parsvnath Developers, told reporters here.

“Initially, we will come up with retail stores in Delhi and Mumbai, followed by other cities. We are already looking for partners for our retail venture,” Jain added. Read More »

Star, Era Group in talks for Multiplex Biz

Star TV and engineering and construction major Era Group are reportedly in talks to enter into the multiplex management business.

Era will see the construction and management of multiplex properties while Star will lend its name, says a PTI report. Read More »

Builders Pull out of Hotel Ventures as Profits Dry up

Leading property developers are pulling out of proposed deals with hospitality majors, including Royal Orchid Hotels and Ramada Worldwide, as cash flows in the real estate sector are slowing. Realtors are reconsidering plans to enter the hospitality sector, according to sources.

Real estate developers with presence in National Capital Region (NCR), Bangalore, Chennai, Pune, among others, are opting out of four and five-star hotel projects. According to sources, a five-star hotel in Pune shelved its plans recently as its developer pulled out of the commitment. Read More »

Old Havelis, Palaces making way for Apartment Complexes

Regarded as the most ancient living city in the world, Varanasi evokes exotic and spiritual feelings. The fact that the city is a maze of narrow lanes and bylanes makes the real estate sector follow its own typical pattern.

The traditional mindset of the people here has resulted in only the properties in established and old areas witnessing a surge in prices. Buyers are still reluctant to move to new areas. “People do not prefer to invest in new areas that are being developed due to the age-old mindset of the people,” said VN Singh a prominent property developer and investor. Read More »

Kolkata stays Hot Amidst cooling Realty prices

The real-estate market in Kolkata has been largely unaffected by the soaring inflation and the US economic crisis, developers and experts say. While the sales and price figures in other metros and cities have shown signs of cooling down, the prices in Kolkata have increased by 7-10 per cent over the last four months.

In their opinion, the city has managed to avoid a crisis because prices here had never reached ‘unrealistic’ proportions. Kolkata’s real-estate market is also relatively stabilisedsince the number of speculative investors here is much less compared with end-users. Read More »