Latest Property News on 'Real Estate Trends'

Real Estate Developers Bet on Eco-Friendly Buildings to Woo Buyers

Call it green revolution in the real estate business. Top developers are now betting on green buildings - that use less energy, water and natural resources, creates less waste and is healthier for the people living inside compared to a standard building - to woo large tenants. Even though green buildings involve an incremental cost of 7-10% over traditional buildings, developers see it as an opportunity for differentiation in a growing market.

The trigger is a growing environment consciousness among topnotch tenants, particularly the multinationals. In the request for proposals (RFPs) that are coming in, many MNCs are starting to ask the question about the green quotient. “It may not be mandatory today but going forward, many MNCs will make it mandatory,” says Jones Lang Lasalle-Meghraj chairman and country head Anuj Puri. Developers such as K Raheja and RMZ have decided to go all green. 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 »

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 »

Real Estate Market in Mumbai Hit by a Slowdown

Mumbai’s realty market, which in recent years witnessed an astronomical price increase bringing it in the league of the worlds most expensive cites, is finally taking a beating. Property sales that have been growing at a clip of about 20% every year have plummeted by 17% in 2007-08, the first time in six years.

Though the property market in the country’s financial capital has been rife with talk of a slump for some time now, this is the first time figures prove the extent of the slowdown. Information about residential and commercial property sales from the stamp duty registration office show almost 12,000 fewer transactions during the last financial year compared to the year before. From April 2007 to March 2008, 62,595 flats were purchased in Mumbai as against 74,555 in 2006-07. Read More »

Realty deals get buried in pan-India landslide

Over the last two years, land prices have shown a northward trend. Now, it’s time now for a realty check. Record land auction at Mumbai’s Bandra-Kurla Complex- like the Rs 46,000 per square ft buy by Wadhwa Builders in November 2007 are passe. The last auction at BKC, by Jet Airways, has seen rates tumbling to Rs 32,000, a drop of a whopping 30% in just about four months.

Year 2008 has already seen some setbacks in land prices across Mumbai, Pune, Bangalore, Chennai and Gurgaon. Most agree that land rates across cities are coming down and deal volumes have decreased. “There has been a visible downward trend in land auctions that started beginning of this year,” says Anuj Puri, chairman and country head, Jones Lang Lasalle (JLL). Read More »

Foreigners Violated FEMA to Buy Land in Goa

The investigating officer of the Enforcement Directorate (ED) has completed the inquiry and submitted the report to the Adjudicating Authority in 12 cases of foreigners having violated provisions of the Foreign Exchange Management Act (FEMA) while buying land in Goa.

The investigation officer A K Singh, who is the assistant director of Enforcement Directorate, has submitted the report in 12 cases and the final outcome is expected in near future. “We have concentrated only on the big cases involving the citizens of Russia and United Kingdom,” Singh told Herald in a telephonic conversation from Mumbai. Read More »

High Real Estate Prices hit Adidas India Plans

Expansion plans of footwear and apparel major Adidas India has been hit by high real estate prices ruling in the country, a company official said.

Adidas India Marketing Private Ltd’s Managing director Andreas Gellner told reporters, “Rise in real estate prices has been affecting our growth plans in India”.

The company’s was planning to increase the number of retail stores from 325 at present to 450 by the end of 2008. It operates the stores through franchisee route. Read More »

Guardian Lifecare to Invest Rs 100 crore for India Expansion

Guardian Lifecare, the country’s second largest retail pharmacy chain, plans to go into an expansion mode. The company intends to open 150 new stores across the country. Guardian is all set to raise funds worth Rs 100 crore for the planned expansion.

Ashutosh Garg, Chairman and Managing director, Guardian Lifecare, said, “Major expansion plans are on the anvil, with an investment plan of over Rs 100 crore, we intend to make a foray into the Western India market. By the end of March 2009, we would have also added another 150 stores across India. Presently, we are growing at the rate of almost two new stores every week. Our employee strength too shall double in a year’s time”. He further added, “Our stores are based on four models— High Street Stores, Mall Stores, Hospital Stores and Personal Stores. We also have a rural and semi-urban format under the brand name Aushadhi.” Read More »

At Rs 1.2L/sqft, Vinod Khanna sets Realty Record in Mumbai

Little Gibbs Road at Malabar Hill is a charming, up market residential enclave where the crème de la crème live, virtually cut off from the hustle and bustle of a congested Mumbai.

On Tuesday, one of its most prominent landmark buildings, Il Palazzo, created a national record after an apartment here was sold at an astonishing rate of Rs 1.20 lakh a square foot — each floor tile more expensive than a Nano car. Read More »