Godrej properties is planning to launch 14 new projects in the current year

India’s leading real estate firm Godrej Properties is going to monetize commercial assets of worth Rs 2000 crore in the period of next two to three years to reduce the debt.

Apart from that now company is also planning to launch the 14 new projects in the current year to explore the more opportunities and more residential as well as commercial projects of the future development, as per the statement of Pirojsha Godrej, CEO and MD of Godrej Properties. The more he added that our debt is increasing and it’s about Rs 2,750 crore at the end of March 2015, but still hopes that by selling commercial properties of worth Rs. 2000 crore in next 2 to 3 years we will reduce the burden of debt.

On March 31, 2015 the net debt of the company was about Rs 2,764 crore however; at the end of December 2014 it was Rs 2,605 crore. Apart from that one of the Mumbai based local real estate developer is construction the large commercial project known as the Godrej BKC at the Mumbai and apart from that two or three more commercial projects are coming up in the city Chandigarh and Kolkata. Godrej said that our proposed launches are the 14 projects hich are in the current fiscal and out of them 7 will be in the Greenfield projects whereas; other seven will be the new phase in other existing projects. But still Godrej has not given any guidance on sales booking for the projects which are set to launch for the year 2015 and 2016.

However; company has achieved the volume of sales booking of Rs 2,681 crore or 3.9 million sq ft area in last fiscal. it has also received the record annual residential sales with the worth of Rs 2,400 crore or 3.6 million sq ft in the year 2014 to 2015. According to the Godrej officials now company is looking for the new projects in current fiscal through the joint venture with different land owners. The more they added that we are exploring the new opportunities in the real estate sector in the city which are present. We are also focusing on the micro markets such as; Delhi/NCR and Noida.In 2014 to 2015 the company has launched the five new projects with the saleable area of 8 million sq ft.

Godrej Properties is the only realty firm of the Godrej Group, which is currently developing commercial projects, residential projects and township projects which are spread on the area of more than 108 million sq ft in more than 12 cities. However; Godrej properties record the 20 per cent rise in the net profit which was Rs 190.90 crore against the Rs 159.43 crore in the previous year, whereas; the total income rose by 54 % which was about Rs 1,926.56 crore for the year 2014 to 2105.

SBI sells 130 properties

Country’s largest lender, State Bank of India could sell only about 130 properties in its e-auction of 300 assets to release just about Rs 100 crore.

As per the senior official of SBI, “we sold around 130 properties, largely residential through the e-auction process to release just Rs 100 crore: The more he added that SBI may sell all of the 100 residential properties it had put on the block. According to data, SBI had put on block around 300 properties with the worth Rs 1,200 crore including shops, factory buildings, offices and residential apartments which are spread across 25 cities including four major metro cities through an e-auction last Saturday, as they had put out a public notice on Thursday.

Due to heavy traffic one of the real estate portal which was assigned to carry out the auction, SBI had extended the time for auctions by an hour. This was one of the best innovative ways by any lender that has been fighting a long battle to contain bad loans, to dispose of distressed properties through an e-auction.

According to statement of PK Malhotra, who is Deputy Managing Director of SBI, “Due to heavy traffic on assigned real state portal for e-auction, the site has become slow and we don’t want anyone to miss the chance. Earlier, the bidding time was till 5 pm and we are now going to extend it by an hour” The process was conducted by e-procurement solutions providers C1 India and Auction Tiger.

Ghodbunder a realty zone

Ghodbunder road is the most lucrative and well-established zone in Thane. It has maximum office supply absorption and maximum potential for capital appreciation and growth for investors with a 5-7 years investment horizon.

Today, this prime residential and commercial area is offering the likes of Mulund, Ghatkopar and even Andheri stiff competition for attracting office space investments. The stabilized residential and commercial environment in the area has instilled the confidence that is needed to revive Thane’s real estate fortunes. With the real estate picking up pace in Thane, Ghodbunder road are has emerged as destinations for IT and ITES players. Ghodbunder’s superior infrastructure, affordability and cosmopolitan ethos could have helped it score over many other areas which lack these attributes. However, the builders feel that the city is still caught in a slump caused by the slow official machinery. The bureaucratic machinery is still trying to sort out various issues, and proactive decision-making is visibly lacking.

Given the prolonged uncertainty over the last few years, it is hoped that with the installation of a new state government the official machinery would move faster and would usher a stable policy regime. It is evident that the kind of clarity that is needed to fully revive sentiments is still to come. However, it is not practical to expect overnight results -the revision of administrative machinery takes time. It makes no sense to harbour unrealistic expectations and come to any premature conclusions at this point.

On the plus side, the there are some serious officials who are very conversant and involved with the ground realities. Even the MMRDA and TMC are determined to make Ghodbunder road a crown jewel for Thane in terms of new initiatives and developments. This involves building confidence, providing stability – and, obviously, attracting investments. If this determination is followed through upon, it is not unlikely that Ghodbunder will once again offer direct competition to other key IT destinations in early 2015. The Thane Municipal Corporation’s budget is expected to provide more clarity on new initiatives and the status of many infrastructure related developments. Corporates currently invested in the real estate in the area are looking forward to this clarity, which will help them take decisions on their expansion plans and investments into the city over the coming months.

Maharashtra and Haryana, the two states which went for legislative Assembly elections on October 15, have another thing in common. They are among the most prominent property markets and together are estimated to constitute 30-40 per cent of the pan-India real estate universe.

While the polls might not substantially impact the property prices in the state, these could slow down policy clearances and infrastructure projects critical to real estate, say analysts. Since the elections happened just about a week ahead of Diwali, a time for the biggest real estate launches, those tracking the sector say there could be some changes and delays in new projects.

A short-term impact on real estate activity and approval processes is likely because of these elections, says Anshuman Magazine, chairman, CBRE, a global consultancy in the sector. “It is usual for project approvals to come to a standstill before elections.” he said and added that infrastructure projects in the states could also be hit, affecting real estate. A Cushman and Wakefield study put the total estimated unit launches at 172,500 across major eight cities of India in 2013. As for prime residential, Mumbai made for 17600 new apartment units in the first half of 2014 and Pune 5,000, according to CBRE data.

The study also shows Mumbai is one of the biggest chunks, constituted 2.2 million sq ft of new prime grade-A commercial supply in the first half of 2014 of a total of 14 mn sq ft across this segment in India. So, in grade-A commercial space itself, Mumbai is the primary real estate driver in Maharashtra and together with Haryana forms more than a third of the pan-India new supply.

Real estate players are a bit cautious and do not want to dampen the Diwali spirits. Lalit Jain, chairman of the Confederation of Real Estate Developers’ Association of India, told a newspaper: “In Maharashtra, the political system has no role to play on project approvals.” Niranjan Hiranandani, managing director, Hiranandani Constructions, said there would not be any perceptible change due to elections before Diwali. However, people would look forward to new policies in housing and incentives for affordable housing. Those policies would depend upon the result of the elections and who forms the new government. Many issues in real estate are governed by state laws. The actual loss to real estate caused by policy uncertainties will be clear after the poll result and how quickly the new government is able to take charge, an analyst said. “The silver lining in all this is that the real estate market is already slow, limiting the impact of elections,” he added.

Very few cities have a capacity to create micro markets and Mumbai is one of them. Mumbai has a micro markets in his boundaries and here is small analysis from those areas, where micro markets have developed.

If you will analyze the Indian property market, so you can easily notice that Mumbai is on the top most position in the property pyramid. This financial capital of country can be defined as DNA of country as attributes of Grade A city. In Mumbai there are many micro markets and they are catering the various needs for socio-economic groups. Mumbai is rising as one of the most attractive destination for real estate investment by following the global growth pattern.  The growth in real estate segment is evolving the new pattern because various budget segments have surfaced in same region and this situation is not only for commercial development as the growth trajectory has co-relation with residential apartments. In Mumbai city for long distance has been dampener the real estate market and now many micro markets have emerging as city within the city of Mumbai.

Real estate market of Mumbai is very dynamic and people love the Walk-to-Work facility, but because of cost this facility is only available for CEOs and other top management of MNCs. In recent development scenario satellite towns are making it possible for average working class of city. For example, Bandra-KurlaComplex has made it possible to leave nearby professional space.  To make sure that Mumbai real estate market is beneficial, analysts are tracking the real estate market of Mumbai in respect of rest of world and buyers or end-users. Mumbai is successfully creating the sub cities like; Navi Mumbai to cater the present and future needs of housing, and it aims to improve the connectivity and infrastructure of city. City is preferred as perfect market to emerge as realty hub with a lot of appreciation potential.

Few emerging locations like; Thane, Bandra and more are providing the supply of more quality spaces with best rentals, which is the interest of corporate. From Navi Mumbai to Thane, one can find a lot of affordable options with in the real estate market of Mumbai. People want to buy property within the radius of 2 kms due to easy connectivity of community centers, hospitals, schools, colleges, and more. The development of micro-markets in the city is the reflection of history and culture of the Mumbai, the way it has developed in past few decades. The modern community places have shifted from Nariman Point to Worli, Parel and BKC and it indicates that these localities are shifting from commercial to preferred residential spaces. Due to heavy traffic people want to live near work places for easy connectivity and those places are; Chembur, Saki Naka, Bandra, etc. Now Mumbai is moving from community flavor to cosmopolitan flavor with the development of various micro-markets.

Micro-markets such as; BKC, Goregaon, Malad, Powai, Andheri has emerged as most important locations for commercial as well as residential spaces. Today end-users or buyers want to travel least possible distance to save their time. In present metro connective is working as game changer for real estate market with the potential to redefine and improve the Mumbai’s property market.

At a time when ways to reduce bureaucratic hurdles are being debated across the country, the state government has planned to remove one crucial layer in registration of properties.

From now on, registration of property sale deeds will not require no-objection certificate from the local civic authority. Builders had been complaining that such NOCs delayed land deals and were tainted by corruption. This system had caused a major hurdle to the realty sector across the state.

The move is likely to revive the struggling realty sector in the state and also curb corruption in the civic departments, said a government official. “Many transactions were getting delayed in the already sluggish market because municipal authorities were able to delay sale deeds. In many cases, local officers would ask for bribe to give NOC,” said spokesperson of a leading real estate firm.

So far, the buyers or sellers were supposed to get NOC from the civic body or the department of town and country planning (DTCP) as no sale deed could be registered without this approval. This has led to the delay in the registration of residential and commercial properties and caused a great inconvenience to the buyers. Moreover, the officials caused deliberate delays to clear the files unless they were paid the bribe, this led to a lot of social tension and the government had received a plethora of complaints against the corrupt civic officials who were netted by the anti-corruption bureau sleuths from time to time.

Further the state government is forming a subcommittee to ascertain the possibilities of amending rules related to medium and small townships where too the resident will not have to seek permission from the municipality authorities to repair, rebuild or buy a new home. “The panel will submit its recommendations to the government in the due course of time so that the necessary action could be taken”, said the official.

Navi Mumbai is trying to solve the problems of overpopulation in Mumbai. However, the township have a good chance to become one of the largest planned cities in the world and boasting the excellent socio-infrastructure including rail and road connectivity with Mumbai and supply of power and water. In the period of 2009 to 2014, this satellite township has witnessed more than 80% growth in property prices, and in Mumbai real estate sector has witnessed the average growth of 70%.

 Games changing infrastructure in Navi Mumbai: Good to stay and best to invest

•   Navi Mumbai International Airport (NMIA).
•   Mumbai Trans Harbour Link (MTHL).
•   Navi Mumbai Metro.
•   Sion- Panvel Expressway.
•   Nerul-Seawood-Uran Railway Corridor.
•   Mumbai-Pune Expressway.
•   Santacruz-Chembur Link Road (SCLR).

Today, Navi Mumbai has become one of the realty magnets for both commercial and residential development with shopping malls, SEZs, modern residential complexes and IT Parks. Once upon a time, Navi Mumbai was neglected area but now the scenario is different and it is attracting the high investment in real estate sector.

Few popular real estate projects in Navi Mumbai:

Currently, the city is witnessing approximately 450 ready-to-move-in projects and 350 under-construction projects. Space India, Arihant Developers, Bhagwati Group, Platinum Constructions, and the Nirman Group are the few names, who are ruling in the real estate market in Navi Mumbai. Here developers are launching quality projects, in different sectors such as; commercial and residential sectors.

Strategic location:

Navi Mumbai is spread over an area of50 square kilometers; it is also the commercial and financial capital of the country. Navi Mumbai SEZ has access to rail linkages and well-developed road as well as JNPT. JNPT is one of the largest and most modern seaports areas. City is also nearby large industrial areas and Pune-Mumbai-Thane knowledge corridor provides the instant access to the skilled manpower.

State-of-the-art infrastructure:

Navi Mumbai offers the state-of-the-art infrastructure and services, residential units in SEZ provide a access to world-class infrastructure and you can chose between flatted factories, built-up office space and land plots. These facilities are ready to use with all basic and necessary infrastructure and services. Other infrastructures include; social amenities, convention centers, recreational facilities and more.

Prices are on way to up:

Demands of property, both residential and commercial are growing high in recent years. Buyers, speculators and investors are making the sound investment in the region on the fast track; Navi Mumbai is emerging as the second most expensive residential location in country due to its strategic location. The SEZ is the project proposed by Reliance industry over an area of 3,200 acres and has played a major role in the rising prices.

From mid-seventies, Mumbai is trying to cater the demand for real estate sector with the eye on future and that’s why Navi Mumbai comes in existence and now this satellite twin of Mumbai is largest planned new city in the world and spread on the area of about 344 kms.

Mumbai remains the top favourite of property buyers, reveals a recent survey. The survey, conducted by a private portal included a 2,583 strong sample of 40 percent respondents in the 25-35 age group and the rest above the age of 46 year.
One-third of the respondents felt that the time is right to make a property investment decision, while 49 percent plan to wait and watch for some time, with the remaining 16 percent saying the time is not right yet. Interestingly, two-thirds – 62 percent – of all respondents expect property prices to soar in the near future while the rest feel that there will be an escalation in the next one-two years, but a total of 79 percent prefer to go for long-term investments in property.
As far the preferred mode of investment goes, flats or apartments top the list with 40 percent of the respondents, followed by individual bungalows with 24 percent and residential plots favoured by 23 percent of the people. Commercial properties found favour with just seven percent and country houses and row-houses were chosen by three percent each.
After Mumbai come Bangalore and Chennai which are hot favourite for all property investments even now. The other cities next on the rankings include Pune, Kolkatta, Delhi-NCR and Hyderabad.
More than half – 55 percent – of the respondents expect the Modi government to reduce home loan rates and the rest demand better infrastructure and setting up of a real estate regulator.