Latest Property News on 'Pune'

District judges to handle suits on property worth Rs 10 lakh

Maharashtra government has increased the amount limit of property-related disputes that can be heard by civil judges (junior division) and district courts in the state. Till now, civil judges (junior division) could hear complaints involving property of up to Rs 1 lakh which has now been increased to Rs 5 lakh, while the limit on property value of suits heard by district judges has increased to Rs 10 lakh from the earlier Rs 2 lakh. A notification to this effect was issued by the state government on Friday.

“The real estate litigation change will be implemented from January 16 for both new as well as old cases. We expect about 50,000 civil appeals to be pending with the Bombay High Court which will now be transferred to the respective district courts,” said advocate Jayant Jaibhave, member of Bar Council of Maharashtra and Goa from Nashik.

“This change would mean that litigants from district-places will no longer have to spend time and money to go to the Bombay High court for appeals up to 10 lakh as now they can heard by the respective district judges only,” said advocate Harshad Nimbalkar, member, Bar Council of Maharashtra and Goa from Pune. He added that it would also help in reducing pendency in the Bombay HC, as these cases will now get de-centralised and will be heard locally.

The Bar Council had been following up with the state government to increase the cap on property limits. The earlier limits were decided 13 years ago and there was a need to revise these limits as the valuation of property saw a steep rise in all these years, Nimbalkar said.

The Bar Council had taken a decision to make a recommendation to Chief Minister Prithviraj Chavan in an open house meeting in September in Mumbai. The BCMG office bearers had even met Chavan in November when he had agreed to increase the limit in-principle.

“The HC had also supported us in this demand,” Nimbalkar added.

Source: http://www.financialexpress.com/news/now-civil-judges-to-hear-disputes-involving-property-worth-up-to-rs-5-lakh/897880/

Real Estate Firms Drop Overseas Plans, To Stay Grounded in India

Real estate companies, which started venturing overseas around 2006-07, are reviewing their global plans. With the slump in international realty markets, many domestic companies are either withdrawing from weak markets or putting their global plans on hold, reports Business Standard. Raheja Developers, for instance, has shelved plans to enter markets such as Mauritius and Colombo. Hiranandani Group, which has a major presence in Dubai, has changed its strategy. It’s stopped launching new projects, and is focusing on completing existing projects for other developers on a contractual basis. Omaxe has already exited Dubai.

Darshan Hiranandani, director and chief executive officer, Hircon International, a joint venture between the Hiranandani group and ETA Star, told Business Standard the company was not launching any new project in Dubai due to the slump. “Our strategy is to complete the incomplete projects for other developers on a contractual basis.” According to him, 23 Marina in Dubai, which was recently completed, has been sold out. However, the launch of Business Bay, which the company says ‘coming soon’ on its website, will not be for sometime. He was optimistic the market would recover soon.

But Nayan Raheja, director, Raheja Developers, is not so hopeful about prospects of the international market. The Dubai market would not recover, at least in the next five years, he said. “Nobody should be looking at the Dubai market as of today,” said Raheja. Raheja Developers, which was evaluating opportunities to enter Mauritius and Colombo, is giving it a miss in the wake of the global economic and realty gloom. “There is negative sentiment internationally. At this point, we are not even considering venturing out,” Raheja said. Tata Housing is one of the few companies looking overseas at this point. After establishing itself in the Maldives, the company is looking at Colombo in Sri Lanka.

Its managing director and chief executive, Brotin Banerjee, said, “We are confident of finalising a few projects in Sri Lanka this financial year — Colombo will be one of the locations. All these international projects are being planned through separate special purpose vehicles formed for each country or project.” Banerjee said the company was in the final stages of due diligence for two mixed-use development projects of two million square feet each in Colombo. Of this, one could be affordable housing. “With peace returning to the island nation, real estate will be a big growth story there,” Banerjee said. Tata Housing has earmarked Rs 1,000 crore for various ventures in 2011-12. “We work on a multi-city strategy and projects targeting all customer segments and hence, a slowdown in some geographies or customer segments does not adversely impact us,” said Banerjee.

Omaxe Group entered Dubai in 2007, with a goal of expanding in West Asia. But after investing Rs 50 crore (the first instalment of a Rs 1,600-crore project) through a joint venture with Dubai World’s property developer, Nakheel, Omaxe withdrew from the market due to a near lull. “We got the investment back, as Nakheel put the projects on hold indefinitely,” said Rohtas Goel, chairman and managing director, Omaxe. And now, the company has no plan of expanding outside India.
According to Sunil Dahiya, managing director of Vigneshswara Developers and vice-president of the National Real Estate Development Council, it is not just real estate developers, but also construction companies, which are withdrawing from the Gulf. “Indian companies in West Asia, especially into construction projects, are experiencing a near lull, as no major work is happening there. The contractors are not being paid,” he said. At least 10 to 15 construction companies present in the Gulf are suffering from the slump. Real estate consulting firm Cushman & Wakefield’s chief executive for Asia Pacific, Sanjay Verma, said, “For those over expanded, it would be a sensible move to focus on their core strength at this point.”

Source:http://www.realtyplusmag.com/rpnewsletter/Fullstory_Newsletter.asp?news_id=18086&cat_id=1

Puranik Builders plans three new residential projects in 2012

Mumbai-based real estate company has announced plans to launch three new residential projects within the first two quarters of 2012. These projects will be launched in Thane, Pune and Lonavala, respectively. The company plans to invest Rs 700 crore in these projects over a span of three years. These funds will be generated through a mix of internal accruals and bank loans.

Elaborating on the Group’s expansion plans for the year 2012, Shailesh Puranik, managing director, Puranik Builders Pvt Ltd, said, “Our Group plans to launch three new residential projects this year at Thane, Pune and Lonavala. While the overall project value of these will be in the tune of Rs 1,000 crore, we will invest Rs 700 in the next three years.”

Sprawling over 1 million sq ft. area, the ‘Rumah Bali’ project at Thane is a residential project comprising 8-9 Towers of 30 storeys each. There will be more than 1,500 units of1/2/3 and 4 BHK priced at Rs 6,000 per sq ft.

The second project at Pune — Sereno Espanola — will be spread over 40 acres of area and consist of more than 2,000 units of 1 / 2 and BHK and Villas of 4 BHK. The units will be priced at Rs 4,500 per sq. ft.

The third project is a high-end villa project which is spread over 10 acres and will consist of 3 and 4 BHK villas priced between Rs 1-1.5 crore.

Optimistic about the Real Estate scenario in 2012, Shailesh further added, “The new launches will happen within the first two quarters of this year and we hope to do good sales.”

The company also has 500 acres of land bank in Pune, Sarjat, Murbad and Dombivali and it plans to launch new projects here in the next 2-3 years.

Source:http://www.realtyplusmag.com/rpnewsletter/Fullstory_Newsletter.asp?news_id=17949&cat_id=1

Eiffel Group to invest Rs 300 crore in golden triangle belt

As the second home phenomenon gains currency in the industrially-developed Mumbai-Pune- Nashik belt, realty player Eiffel Group has earmarked Rs 300 crore over the next three years to launch more projects in the region, referred to as the state’s ‘golden triangle’.

“Eiffel Group is primarily into plot development. In realty parlance, plotted development means a developer sells large tracts of land after building basic infrastructure like sewage systems and roads.

We will be investing around Rs 300 crore for acquiring land as well as building the necessary infrastructure in this area. Besides, we may also develop certain residential facilities here, which we can promote as second homes,” said Shirish Mulekar , director, Eiffel Group.

“Investment in real estate is the best option today. There is an enormous appetite for plots situated within 90-100 km radius of the Mumbai-Pune-Nashik belt, both for ownership as well as an investment,” Mulekar said.

He said, areas such as Pen, Neral, Khalapur and Pali, near Mumbai, are a part of the golden triangle and therefore are on the cusp of rapid development as several infrastructure projects are coming up in the vicinity.

“Buyers are looking for investing in prime home projects in the city and its vicinity, as prices are on fire in the city. But a property, with lower ticket price gives an opportunity even to a common man as well as investors,” he said.

Moreover, Maharashtra has laid huge emphasis on infrastructure in the golden triangle, such as Panvel-Karjat rail connectivity, Murbad highway and Sewri-Nhava Sheva transharbour link.

“These projects make the area ready for aggressive development,” he said.

The company has already acquired 500 acre in the area for plotted development and plans to acquire another 2,500 acres over the next two years.

In August 2011, the company had entered into an agreement with India Realty Excellence Fund (IREF), managed by Motilal Oswal Private Equity Advisors, to undertake plotted development projects at Karjat.

“We have already tied-up for Rs 100 crore through the IREF deal. Eiffel will be pumping in Rs 100 crore. Besides, we will tie-up with other financial institutions for another Rs 100-150 crore,” he said.

Source:http://www.realtyplusmag.com/rpnewsletter/Fullstory_Newsletter.asp?news_id=17925&cat_id=1

Marvel Realtors launches luxury commercial project in Pune

Pune-based real estate developer, Marvel Realtors, has launched a 1.1 million square feet luxury commercial space project, Marvel Edge at Viman Nagar in Pune. The company has tied up with Och-Ziff, US-based Nasdaq-listed hedge funds, and has also invested Rs 760 crore in the project.

According to Vishwajeet Jhavar, managing director and CEO of Marvel Realtors, the project is coming up on a sprawling 14 acre green campus with a total of 1.1 million sq ft built up area of which 0.9 million is dedicated for business space.

“The total sales revenue of Marvel Edge is Rs 1,200 crore. Och-Ziff has invested over Rs 140 crore and owns 75 per cent of the project,” says Vinod Makhija, director of Marvel Realtors. He said the project will be completed within 20 months.

“We have already sold one-third of the project at Rs 7,500 per sq ft,” said Makhija. According to him, HDFC PMS had already purchased 1,00,000 sq ft area in the project.

He said the nine-storeyed project has state-of-the-art infrastructure while the design is environmentally sustainable. Marvel Edge’s unique curvilinear façade will provide a distinctive signature to Pune’s skyline. “Its façade with perforated envelopes will reduce heat exposure and minimise power consumption,” said Makhija.

“This will be the first of a kind project, designed with an international taste and style in Pune, offering innovative design, technology, luxury and quality execution,” said Jhavar.

According to him, the commercial and office spaces ranging between 1,500 sq ft and 1,800 sq ft have been sold out. At present, only areas measuring 2,300 sq ft up to 50,000 sq ft are available for sale.

Source: http://www.realtyplusmag.com/rpnewsletter/Fullstory_Newsletter.asp?news_id=17851&cat_id=1

Mumbai property registrations down 20% in November, at 31-month low

Registration of property deals in Mumbai, the country’s most expensive realty market, continued to decline, hitting a 31-month low in November. During the month, registration realty deals slipped 20% from a year ago to 4,060, said a report from brokerage Prabhudas Lilladher. On a monthly basis, realty registration remained weak with 12% decline in the backdrop of no significant price correction and high interest rates. The data reinstates the fact that the festival season of Diwali has also failed to drive up sales or gather momentum even after offers and freebies offered by developers.

According to brokers, some project and developer-specific discounts to the tune of nearly 5-8% have already started, but most consumers are deferring their decision on assets purchases anticipating a sharp correction. Bookings momentum, barring few projects, continues to be on downtrend in most pockets of the market, and sales are expected to remain low until property rates decline or home loan rates start easing, they said.

Registration of lease transactions for November, however, continued to show an uptrend with 58% year-on-year growth at 8,580. On a monthly basis, leasing activity witnessed rise of 6%, indicating that prospective home buyers are delaying their decision making and entering into lease transactions.

Source:http://articles.economictimes.indiatimes.com/2011-12-20/news/30538107_1_realty-market-registration-expensive-realty

As Rupee falls, NRIs ‘home’ in on realty in Mumbai

The record decline in the value of the Indian rupee and the sluggish realty market have proved to be a double delight for overseas Indians investing in property here. Sunil Sequira, a resident of Kuwait, has zeroed in on a property in Thane at a rate nearly 30% lower than usual. “This is the right time to buy property,” he said. “Many of my friends have also decided to buy property in India. We are expecting an annual 10% to 15% appreciation.”

Sandeep Reddy, co-founder of Groff.com, a real estate brokerage firm, said it has been getting a good response from overseas buyers. At the recent property exhibition in Dubai, many people booked flats on the spot, and several showed interest in flying to Mumbai to check out property and finalise their decisions. “NRIs are mainly interested in Navi Mumbai and Bangalore properties. This time, there was a slightly lower demand for the Delhi market. Going by this response, we have decided to organise and participate in exhibitions in Singapore and other international places that have a large Indian population,” said Reddy.

Niranjan Hiranandani, managing director of the Hiranandani Group, said, “The decline in the rupee value against the dollar/dinar in the international market has helped to attract more and more NRI buyers. If the cost of the flat is Rs1 crore as per the Indian market, the NRI has to pay only Rs85 lakh— 15% less, thanks to the record decline in the rupee value.” Commercial opportunities in the West are on a downturn. So, people are looking at the Indian market for investment and business purposes, he added. “Once the RBI brings down its high interest rate, the city property market will surge again. There is a huge demand for houses, but the high costs and interest rates have discouraged buyers temporarily. People are awaiting the low interest rate loan.”

Sukhraj Nahar, managing director of the Nahar Group concurred. “Many NRIs have shown interest in buying property. They will come to India around the end of December and in January 2012 to see and finalise the properties. Our city developer body is also organising a property exhibition in Dubai to attract more NRI buyers,” he said. “We were unhappy with the poor response from domestic buyers,” said Manohar Shroff, general secretary of the Maharashtra Chambers of Housing Industry, Navi Mumbai. “Now this void has been filled by overseas buyers. During this crunch period, it’s a blessing for developers, who were reeling under the immense pressure of high interest rates, low property sales and high construction and labour costs. NRIs will help us sustain the market. Once the slump is over, our local buyers will turn up in greater numbers to rejuvenate the market.”

Source: http://www.dnaindia.com/mumbai/report_as-rupee-falls-nris-home-in-on-realty-in-mumbai_1629088

Morgan Stanley to invest Rs 600 crore in Mumbai projects

The global real estate fund of Morgan Stanley is in talks with Mumbai-based Sheth Developers to invest $100 million to $125 million (Rs 530 crore to Rs 600 crore) in a residential project in Mumbai. The Morgan Stanley fund will invest in the unlisted Indian firm’s project in the western suburbs of Mumbai, Business Standard reported, citing sources.Morgan Stanley declined to comment and Sheth Developers did not return phone calls seeking comment. Sheth Developers acquired an 18-acre land parcel in Andheri from Borosil Glass Works in 2010 for about Rs 875 crore and plans to develop a large residential project there, said the sources.

If completed, the investment would be the first in India by the Morgan Stanley fund in three years, two of the sources said. The fund has invested about $750 million so far in India. In October, sources told Reuters that a bunch of investors including a fund managed by Morgan Stanley and the Government of Singapore Investment Corp are in separate talks to buy a Mumbai property from Indian textiles firm Alok Industries for about $200 million (Rs 1,100 crore). Last month, the Wall Street bank named Shirish Godbole as the head of its global real estate investment fund in India.

Indian developers have come under pressure over the past year as rising interest rates deter residential buyers and funding for builders becomes scarce as economic growth slows.

Source:http://www.realtyplusmag.com/rpnewsletter/Fullstory_Newsletter.asp?news_id=17729&cat_id=1

Pune pips metros in realty race

When it comes to residential project construction activities in major metropolis, Pune is a clear winner. As per a report brought out by Liases and Foras — a real estate research firm — construction activity for residential housing in the last two years has witnessed a sustained growth in Pune, while signs of a significant slowdown have been observed in Mumbai, Delhi, Chennai and Bangalore. Reasons: exorbitant property prices, less demand and stringent government approval procedure.

In fact, the residential projects construction activities are directly linked to and indicative of property sale. According to Pankaj Kapoor, managing director of Liases and Foras, “Developers are not launching and constructing as many projects as they used to earlier. For, most of them have sold out their present under-construction stock to investors after taking the token amount. But the projects could not be completed on time due to many reasons, including limited demand owing to exorbitant property rates, inflation, high EMI, etc,” he said.

In the past two years, when the market has been routinely flooded with investors, the Pune property market has witnessed significant growth. “The primary reasons for this sustained growth is that the Pune market is purely consumer-driven, and not investor-driven. It is not a highly inflated market as the other metros and even the appreciation ratio is low. This does not hike up property rates immediately and frequently and is a good sign which needs to be maintained,” Kapoor added.

Further, nearly 1,147 residential projects have been delayed in six metros — Delhi, Mumbai, Pune, Hyderabad, Chennai and Bangalore, added Kapoor.

Others like Manohar Shroff, general secretary of the Maharashtra Chamber of Housing Industry (Navi Mumbai), are putting the onus of spurning construction of residential properties on the state government. According to Shroff, the snail pace of construction activities exists despite builders evincing keen interest. “We’ve been regularly submitting the proposals, but the local coporations are not approving them on time, with several proposals struck down without any valid reasons. As a result, the construction activities has come to a grinding halt,” he said. Demanding that the government should resolve the issue and start approving the projects immediately, he added, “Or else the slow construction pace will result in lesser housing stock being available in future, thereby causing a price rise.”

Source: http://www.dnaindia.com/mumbai/report_pune-pips-metros-in-realty-race_1626576

Lonavala residential bungalow sold for Rs 1.6 crore

LONAVALA (PUNE): A residential bungalow, spread over an area of approximately 3,300 square feet, was sold for Rs 1.61 crore. The bungalow is part of a villa development project and offers to its residents a plush four- bedroom unit.

Holiday homes in the locations of Lonavala and Khandala (which are almost equidistant from both Mumbai and Pune) have been receiving interest from investors and second-home buyers. This is partly because the infrastructure in these areas has greatly improved with more amenities like electricity and water supply and better accessibility.

With a capital value of about Rs 5,000 per squarefoot, most current purchasers are likely to see good appreciation in the medium to longterm.

However, in the shortterm, given the current supply which seems to be moderately higher than the demand in the location, values and volume of sales are likely to remain consistent.

(Cushman & Wakefield)

Source: http://economictimes.indiatimes.com/markets/real-estate/news-/lonavala-residential-bungalow-sold-for-rs-1-6-crore/articleshow/11125989.cms