Real Estate in India: RBI, Yatra, Loans, Bangalore, Prices

Weekly news updates on trends in the Indian real estate market

There is a slow down in property purchasing activity due to RBI’s control measures. The biotech sector is expected to drive industrial, commercial and residential real estate demand. The Indian property market continues to attract investments from global players.

- Chillibreeze Business Research Team

Property firm Yatra to raise up to $211 mln

Yatra Capital wants to raise up to 150 million euros ($211.2 million) to finance a range of investment opportunities in India's property market.

Yatra has appointed ABN AMRO Rothschild and Fairfax I.S as joint bookrunners and coordinators of a part-private, part-public follow-on share issue.

September 25,2007
Reuters Via yahoo

Assotech-Supertech to invest Rs 850 cr in Rudrapur township

Assotech and Supertech have joined hands to develop a 47 acre integrated township in Uttarakhand with an investment of Rs 850 crore. The township will comprise about 2,000 apartments, a 5-star hotel and about 1.6 lakh sq ft of retail space.

September 24,2007
Source: PTI via Economic Times

Biotech could be next big driver of realty prices

According to JLLM, the biotech sector will need 80 to 100 million square feet space by 2010. Investment in biotech factories has more than doubled, from Rs 14 crore in 2003 to Rs 36 crore in 2006.

There are six biotech parks in India and 19 more are in the pipeline.

Hyderabad, Bangalore, Pune and the National Capital Region are popular cities for biotech firms.

September 24, 2007
Source: Moneycontrol.com

Delhi and NCR residential real estate market sluggish

The suburban markets in Delhi and NCR have sluggish demand and adequate supply of new units. CBD and south west Delhi has witnessed steady purchasing activity.

September 23, 2007
Source: INR News

Bangalore residential real estate market sees a slowdown

According to Cushman and Wakefield, the real estate market in Bangalore has seen slow down in purchasing activity. There is a marginal increase in prices and nearky 20% drop in sales.

September 23, 2007
Source: INR News

RBI’s monetary policy inimical to real estate: Assocham

Assocham has called for reviewing of the Reserve Bank of India (RBI) monetary policy to remove its excessive focus on taming inflation only and concentrate to reduce mortgage rate, besides take measures to curtail interest rates to enable wage earners to afford dwelling units.

September 23, 2007
Source: INR News

Mivtach Shamir to invest 13 million in Chennai real estate

Israeli investment company plans to invest $13 million in Chennai.

September 23,2007
Source: INR News

RBI wants a fix on bad loans in realty

RBI has commissioned a survey on bad loans.

The regulator has sought details on standard advances in the sector from banks for three fiscals — 2001-02, 2002-03 and 2003-04. RBI wrote to some banks on September 14, directing them to respond to queries by September 28, bankers said.

September 22, 2007
Source: Economic Times

DLF emerges highest bidder for Tidel-II

DLF Ltd has emerged the highest bidder for setting up the Tidel-II, the second IT and ITES SEZ, in Chennai.

September 21, 2007
Source: Hindu business line

High rates hitting real estate mkt: DLF chief

High lending rates triggered by the Reserve Bank of India's tight monetary policy have tranquilised the country's property market.

It is expected that demand will surge once rates dip.

September 19, 2007
Source: Indian Express via Yahoo

Chandigarh Housing Board to construct 10,000 houses

Chandigarh Housing Board (CHB) has drawn extensive plans to create additional housing stock in Chandigarh in next 2 to 3 years.

About 42 acres land in Sector 63 has been earmarked for construction of about 2,000 houses, and the scheme is likely to be floated shortly.

September 19, 2007
Source: PTI via Economic Times

Credit Suisse, Deutsche Bank in race for 30% of Golden Gate

Credit Suisse, Deutsche Bank and ABN AMRO are in the race for picking around 20-30% stake in the Bangalore-headquartered real estate firm, Golden Gate Properties (GGPL), for an estimated $100 million.

At a little over $100 million, this could be one among the largest real estate FDI investments at the holding company level. Earlier this year, Morgan Stanley’s real estate investment arm closed a deal worth $150 million with Mumbai-based Oberoi Constructions. While Bangalore-based real estate firm DivyaSree Developers received $100 million from TPG-Axon Capital, the CapitaLand group and Mumbai-based real-estate developer Runwal group formed a joint venture to develop residential projects with an investment.

September 19, 2007
Source: Economic Times