Real Estate Investment in India, Symposiums and more

Weekly news updates on trends in the Indian real estate market

Property prices in Mumbai, Delhi and Gurgaon continue to be unrealistically high. A JP Morgan study on Indian real estate expects some correction in minor markets but no bubble burst as of now. A leisure real estate symposium is on the cards-indicative of the potential of luxury real estate in India.

Chillibreeze Business Research Team

Thai property firm eyes investment in Vietnam, India

Thai real estate developer Preuksa Real Estate is studying housing markets in Mumbai and Bangalore.

Preuksa is considering setting up new subsidiaries or joint ventures with local partners.

August 14, 2007
Source: Bangkok Post

Navi Mumbai turns posh

Premium luxury apartments, sale by invitation only, high-end amenities and mind-boggling property rates make Navi Mumbai the upscale satellite township.

Nerul, Belapur, Palm Beach Road, Kharghar have residential flats and penthouses worth 3-5 crores in the offing.

The Reliance SEZ is fuelling property prices.

August 13, 2007
Source: Hindustan Times

Group RCI Hosts First Leisure Real Estate Symposium in India

Group RCI, the global leader in non-hotel leisure accommodations, will be hosting their first Leisure Real Estate Symposium in India- India, Riding the Wave of Growth on August 23 & 24 at New Delhi.

The two-day symposium aims to help owners, developers and operators of leisure real estate learn about the latest leisure real estate models and have the opportunity to be part of lively panel discussions and question and answer sessions with industry experts.

August 13, 2007
Source: PRNewswire

Now, pay Rs 50 lakh for garage

According to market sources, an enclosed garage in south Mumbai properties could cost as much as a small-sized apartment in the suburbs.

The going rates for closed garages (about 250 sft):

Off Pedder Road: Rs 25 lakh
Nariman Point: Rs 20 lkh
Bandra-Khar-Santa Cruz: Rs5-10 lakh

August 12, 2007
Source: Times of India

Now realtors look for roof over head

It is indeed ironical that real estate companies such as Parsvnath, Ansal API, SNG developers, Uppal housing, Omaxe and others may be building housing and commercial projects for others but they themselves are struggling to find office space in the Delhi.

Options under consideration include locations at Noida, Jasola, Gurgaon, malls at DMRC stations. In Delhi’s CBD, the supply of office space is limited and costs are unrealistic.

August 12, 2007
Source: Economic Times

Realty cos spin land deals

Real estate developers such as DLF, Unitech, Omaxe, Besteck and Ansals are now approaching textile companies in Gurgaon for completely buying out their mills or setting up joint ventures to develop commercial or residential real estate projects.

The Haryana government has 100 proposals from textile industries for change in land use.

Textile manufacturers who have tied up with the builders include House of Pearl Fashions (HOPF) and Orient Craft.

Selling of the textile mill lands for real estate development has been happening in Mumbai for some time now.

August 10, 2007
Source: Economic Times

Indiareit Fund invests Rs 225 cr in Skyline

Skyline Constructions and Housing, a Bangalore-based property developer, has received Rs 225 crore investment from Indiareit Fund Advisors to develop real estate projects in Bangalore and Mysore.

Indiareit Fund is a $300-million fund promoted by Piramal Enterprises with 3i being a major investor.

August 9, 2007
Source: Business Standard

Indian real estate opens to foreign investors

The real estate sector in India has seen tremendous growth over the past year as property prices have soared and the number and scale of projects have increased. Needless to say, developers are enjoying this growth and are seeking to meet demand with large-scale projects.

To fund these projects, developers are looking to investors, both domestic and foreign, through avenues such as listings on London's Alternative Investment Market, domestic initial public offerings, private equity participation and the setting up of joint ventures.

August 8, 2007
Source: Financial Times

Real estate boom in Dwarka

Dwarka is happening destination in Delhi.
Property prices have more than doubled during the last couple of years.
The coming of the metro and airport in proximity along with plans of shifting prime usage to this area is expected to make it a prime hub.

August 8, 2007
Source: NDTV

Hedge fund woes may tell on realty issues

India's real estate housing markets are focused locally and to that extent there should be no worries about the US sub-prime credit fears affecting other markets, but many global hedge funds are facing redemption pressures on account of their sub-prime market woes and that may turn adverse for real estate companies that want to raise equity capital from the markets.

The effect of that has already been felt in the extension and re-pricing of the ongoing Purvankara Projects initial public offer (IPO).

A JP Morgan research report says, ‘property prices are at risk, but not yet in bubble zone and "a correction in certain micro markets cannot be ruled out."

August 8, 2007
Source: Hindustan Times

Builders wary of reservation policy

Developers are protesting against the Maharastra government’s plan to enact a legislation which will make it mandatory for all layouts to reserve 20% housing for the middle- and low-income groups.

The Promoters and Builders Association of Poona (PBAP) says that the idea is unrealistic, not feasible and will lead to more corruption.

August 8, 2007
Source: Economic Times

Singapore firm launches India-focussed real estate IPO

Ascendas India Trust has launched the first IPO offering on the Singapore Stock Exchange with the aim of owning business space real estate in India.

The IPO size was 500 million Singapore dollars while the offer price was 1.18 Singapore dollar, officials of JPMorgan, the sole financial advisor and joint bookrunner for the mega issue, said today.

AIT's initial portfolio comprises four world class business parks in three IT centres in India. It plans to grow organically and also through acquisitions.

The investors were indicated that they could expect an yield of 4.75 per cent in FY08 and 5.81 per cent in FY09 on their investment in AIT shares. Incidentally, the regulations there allow a company to indicate possible returns on investment.

August 7, 2007
Source: Economic Times