News and views about the Real Estate in Indian cities

Weekly news updates on trends in the Indian real estate market

According to Dun & Bradstreet, India needs to increase infrastructure investments to 8% of the GDP to sustain the ongoing momentum in economic growth. Standard & Poor rates Indian real estate stocks as the most expensive with low returns on investment. Property in Mumbai commands a premium. Jindal group leads the pack in plans to acquire commercial space at Kalina and developers lobby to redevelop Dharavi.

Chillibreeze Business Research Team

I-T dept to end retailers' rosy days

Tax men are checking on retailers taking space in malls for evasion of tax deducted at source (TDS) by them.

The income-tax department has taken note of fact that many retailers split the basic lease agreement into separate lease agreements for fixtures, building and maintenance just to avoid TDS. They also enter into profit-sharing agreements with mall owners to avoid paying tax at source. TDS has to be cut at the rate of 20%.

Aug 7, 2007
Source: Economic Times

Investing in infra projects may become reality soon

Sebi committee on dedicated infrastructure funds has proposed launching 7-year close-ended schemes for retailers investing in large infrastructure projects in the country. So far mutual funds were investing in just stocks of infrastructure companies and if this proposal goes through, they could make 100% investments.

Aug 7, 2007
Source: Moneycontrol.com

Big guns queue up for prime city property

Reliance Retail, the Sajjan Jindal group and Rosy Blue are in the race for Orbit Corporation’s 2.5-acre land in Kalina in Mumbai.

Orbit will sell the land along with a commercial property which is being developed on the plot.

Aug 6, 2007
Source:Economic Times

Real Estate Bank to appoint franchisees

Bangalore-based Real Estate Bank International Ltd, (REBI) plans to expand REBI services in Tamil Nadu. It already has presence in Karnataka, Kerala & Andhra Pradesh.

REBI aims to bring transparency to real estate transactions and offer all services under one roof for both buyers and sellers - brokerage, financial advice, database generation and relocation services.

Aug 7, 2007
Source: Chennai Online

Realty in consolidation mode

Over half-a-dozen corporates, who are in the process of raising funds, are merging their real estate subsidiaries with parent companies to create value. These are Peninsula Land, the Ajmera Group, Lok Housing, Orbit Corporation, SAB Industries and Satra Properties.

Aug 6, 2007
Source: Economic Times

MALL wonders

The shopping mall is everywhere—glassy, glitzy and brash; the architecture of conspicuous consumption.

Victor Gruen, Austria-born American architect who first made malls conceptualized it as a space that promotes a sense of community.

Aug 5, 2007
Source: Indian Express

Asia's biggest slum set to turn into India's Madison Avenue

If all goes to plan, May 2008 will see Asia’s largest slum, Dharavi (Mumbai) become a place with high-rise blocks for its 600,000 inhabitants, an industrial park for its businesses, and gleaming commercial and residential developments for sale.

The plans could hit a road block due to socio-economic and political issues associated with slum redevelopment and relocation issues.

Aug 5, 2007
Source: The Independent

Mantri plans Rs 2,500-cr hospitality biz foray

Mantri Realty has drawn up plans to set up two five-star hotels and a clutch of three and four-star hotels across India by 2010.

The total investment in the business is envisaged at around Rs 2,500-crore, of which Mantri will be bringing in Rs 800-crore as its equity investment. The remaining Rs 1,800-1,900-crore will be sourced through debt and strategic investors.

Aug 5, 2007
Source: Economic Times

REBI to start its operations in Rajasthan

The Real Estate Bank of India (REBI) is planning to start its operations in Rajasthan from Diwali onwards.

Aug 4, 2007
Source: PTI via Economic Times

GHIAL ties up with Apollo Hospitals for setting up medical centre in Hyderabad International Airport

GMR Hyderabad International Airport Limited (GHIAL) has selected Apollo Hospitals for setting up a medical centre inside the Passenger Terminal Building (PTB) at the Hyderabad International airport.

Apollo Hospitals will set up a medical centre spread over an area of over 300 sq meters in Level B of the PTB and first aid kiosks in the passenger restricted areas. It will provide permanent staffing and dedicated paramedics in this centre. It will be a 17-bedded medical centre, having facilities such as Ultrasound/ECG and 24 hr emergency dental services.

Aug 2,2007
Source: INR News

Indian infrastructure needs $320 bn in the next 5 years

Dun & Bradstreet recently organized a conference on ‘Dynamics of Infrastructure & Real Estate Markets: The Financial Perspective’.

The conference stressed on the importance of infrastructure development as the key driver to sustain the momentum of current and potential economic growth in India.

Dr. Manoj Vaish, President & CEO – India, Dun & Bradstreet said, “India needs an investment of around $320 billion and the investments in infrastructure needs to be increased from the existing 4.55% of GDP to about 8% of GDP over the next 5 years.”

Aug 1,2007
Source: INR News

Indian real estate stocks most expensive in the world

Real estate stocks in India are the most expensive in the world even as they give lower returns than most of the emerging as well as developed markets including China, Singapore, Hong Kong and Australia.

The S&P study put the last 12-month P/E for Indian stocks at 209.30, against just 29.69 in China, 39.90 for the US and 3.18 for the UK. On ROE front, Indian stocks gave a 7.15 per cent return, lower than the global average of 7.3 per cent.

While India's ROE was higher than that of the US (6.2 per cent) and the UK (3.05 per cent), it was the second lowest among emerging markets after Turkey's 4.2 per cent.

Aug 1, 2007
Source: PTI via Economic Times