Porperty Channel – MagicBricks Now

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Times Network is ready to launch India’s first housing and property channel known as “MagicBricks Now” and it is going on air from November 1, 2015.

On last Wednesday, officials from Times Network formally announced in New Delhi that they are ready to launch India’s first property channel “MagicBricks Now”. It is all set to go on air from November 1, 2015, and announcement was made in the presence of Union Minister of Urban Development, M Venkaiah Naidu.

According to M Venkaiah Naidu, “I am happy that now onwards there will be more focus on real estate sector and first time investors or buyers will have place to learn something in real estate sector. News and views should remain separate and it is expected that it will help to create the platform for the housing sector and it will help to tie up the government and real estate builders with an aim to create houses for all segments, to get succeed in central government’s mission “Housing for all by 2022”.

Why property channel?

In present the advertising market of real estate in India is about Rs 2,500 crore of which more than Rs 900 crore is garnered by the Times Group itself, especially in the print segment. And now by launching new channel MagicBricks Now”, the Times Group is attempting to increase the market share of real estate advertising as well as want to educate people about real estate trends and pricing factor. Faye D’Souza, the channel’s editor explained that how this new channel will focus on the end consumer with an aim to serve as a platform for the real estate development and infrastructure sector. The more he added that MagicBricks Now” will have singular focus i.e. to educate the end consumer.

How this new channel will deliver information and analysis?

This new channel will showcase rich array of programs which will range from debates to news bulletins and leadership insights to experts views and all about real estate market. These things will help the Times Group to keep the end consumer informed and on the same time to serve as a common meeting ground for experts, first time buyers, sellers, big investors, and real estate developers  who are looking for serious business in real estate sector.

MK Anand, MD and CEO of Times Network stated while explaining the positioning of the channel, “MagicBricks Now has been launched with sole ambition to guide the consumer through process and decision making process with the help of views, analysis and debate of real estate leaders and experts. In present, real estate is of paramount importance in the life of normal people and real estate market is full of jargon, confusion and complexities. “MagicBricks Now” will be first and best unbiased, trustworthy and most authoritative property channel in the Indian property market to help the consumers”.

Channel Programs:

The channel programs will include The Home Buyer’s Guide, The Vastu show, Real Estate Tycoon’s, The Property Guide, Property Hotline, The Interiors Show, of course, ‘The News’, every hour. However; the main spotlights of the channel will on the relevant issues such as; local civic amenities, national property, sustainability, and environment issues will make the channel accessible to all. The marketing campaigns for channel will be unfold post Diwali and MK Anand expects that there will be more viewership for MagicBricks Now in comparison of other English News channels. He expects the channel to reach on the break even in next 4 to 5 months.

While speaking about the association with Times Network to create new channel “MagicBricks Now” Sudhir Pai, CEO of MagicBricks.com stated that “Now onwards we will be the part of MagicBricks Now and we are delighted to be a part of this initiative. Our endeavor is to make our brand ubiquitous across media with an aim to provide real and trustworthy analysis and in-depth information to the consumers. And with this association we will leverage the visual appeal of television to communicate with end users through rich data and experts view”.

The channel will have four partners; Hiranandani, Magicbricks, Mantri and Lotus Green.

Carnival Group

Currently, Indian property market is witnessing boost after the two mega commercial deals; In first deal; Carnival Group buys real estate project from L&T Group in Chandigarh and the deal price was Rs 1,785 cr and in second deal; Abbott Group buys office space from Godrej Properties in Mumbai and deal price was Rs 1,479 cr.

About the deal of Carnival Group:

As per the reliable sources, Carnival Group, which is leading multiplex player in our country bought a commercial project in Chandigarh City directly from the Larsen & Toubro (L&T), which is leading engineering and construction player in country and for that deal price was Rs 1,785 crore. This two million sq ft mixed use real estate project in Chandigarh City will include a mall, office space and a Hyatt luxury hotel. Before one and half year, L&T had put the project on the block and company was in talk with Carnival Group from last one year. According to the statement of Shrikant Joshi, CEO of L&T Realty, “It was our strategic decision to not to run the malls and hotels”. The more he added that at this point of time we are looking for opportunity to sell out upcoming malls in  Navi Mumbai’s Seawoods region and regarding that we are in talk with other investors. It is expected that this acquisition will help the Carnival group to widen up the portfolio and this deal will also help the company to achieve a leadership position in the retail sector of country, as per the officials of the Carnival Group.

According to Shrikant Bhasi, Chairman of Carnival Group, “This acquisition is the part of our current asset creation initiative where we are trying to create new assets for the investment portfolio of company. The more he added that this deal will also help to expand our capabilities and make inroads into newer markets, however; this project will be operated as a separate unit and it will be led by Indi based management team. Off the records, it’s very clear that Carnival Group has been on an acquisition drive because it is third real estate acquisition after Leela Technopark in Thiruvananthapuram and Leela Infopark in Kochi. Previously, Carnival Group has also bought out the Big Cinemas multiplex business from Anil Ambani’s Reliance Group. Apart from that this group has acquired Glitz Cinemas, which was the part of Capital 18, a subsidiary of Mukesh Ambani controlled Network 18 Media

About the deal of Abbott Group:

deals of Carnival Group

In another deal Abbott Group, leading pharma company of India purchased 0.43 million sq ft of office space from Godrej Properties, which is located at Godrej Bandra Kurla Complex (BKC) in Mumbai and for that deal price was Rs 1,479 crore, it is one of the biggest office space deals in India. As per the statement of Ashok Kumar, MD and Director of Cresa Partners¸ a property consultant company, “The price of Rs 34,000 per sq ft, it is the higher than the market price and Abbott Group has paid 10 to 15 per cent higher price than market price, but as it is for self use and they are about to use it for Indian headquarters, so they didn’t bargain on the price”. However; for lease or rent offices properties prices are between Rs 250 and Rs 300 per sq ft in BKC and for sale property prices are between Rs 28,000 and Rs 30,000 per sq ft. at the same region.

The space which was bought from Godrej, Abbott Group is planning to build Mumbai office headquarters and it will be house of more than 1,500 employees. Godrej BKC is the joint development project of Jet Airways and Godrej properties for the development of a 1.3-million-sq-ft project. According to Sanjay Dutt, MD of Cushman & Wakefield, who also worked as the advisor for the deal, “Companies such as; Abbott and other large banks or fast-moving consumer goods companies (FMCG) continue to see India as a large market and this is why they are not hesitating to own the permanent space in India at high price. So, it makes sense for them to buy strategic assets. The more he added that valuations of the property and deal sizes are going to go up in the developing countries and it is just the beginning.

According to Pirojsha Godrej, MD and CEO of Godrej Properties, “Company will use the earning for debt repayment and to explore the new opportunities in the real estate market of India. The more he added that in present, two-thirds of the company’s debt pertained at BKC project.

moody’s investors service

According to Moody’s Investors Service, in past two to three years the capability of the Indian real estate developers to execute commercial and residential projects in market has been challenged because of late approvals and stretched liquidity. And such delays have slowed the flow of payments from buyers and investors as well as it has also reduced investor demand for new projects because of low returns and locked up capital. The more they added that India’s premium and largest property developers will face new challenges in next 12 to 18 months over the environment operation including; flat sales, stagnant prices and weak cash flows.

Recently, Moody’s releases a report on the Indian property market with title “Cash Flows to Remain Weak Amid Flat Sales and High Costs”. According to Vikas Halan, VP and Senior Credit Officer at Moody Investors Service, “A the same time, apart from many difficulties, we are expecting solid economic growth for the year 2014-2015  and it will provide some support to the sales in real estate sector, which will enhance the confidence and investment activity of the investors and buyers”. The more he added that if the cuts of interest rates by the Reserve Bank of India will be passed by banks, so it will filter down the property market by reducing the cost of borrowing for buyers as well as real estate developers and it will support the demand. But declines in savings rates and high residential property prices will act as the major factor, especially in the cities like Mumbai and Delhi where property market exhibits a notable degree of variation when it comes to affordability and cost of property.

It is expected that some of the major real estate developers such as; Lodha Developers Private Limited (Ba3 negative), Unitech Limited (unrated), DLF Limited (unrated), India-bulls Real Estate Limited (B1 stable), and Oberoi Realty Limited (unrated) will face challenges in the operating environment and they will experience more pressure on cash flow, sales and high inventory volume because they are operating in the city like Delhi and Mumbai, where prices of properties are the highest. However; in contrast developers such as; Prestige Estate Projects Limited (unrated), Brigade Enterprises Limited (unrated), and Sobha Developers Limited (unrated), which are Bengaluru based will face better and stable demand for housing sales.

Currently, instead of reducing the prices, real estate developers are modifying product and offering some lucrative schemes. On the other side the confidence of consumers are getting boost due to Real Estate Bill (Regulations and Development), which is planning to set-up new  regulatory authority and guidelines for residential and commercial development. However; still developers are facing stricter terms over the receipt of capital and use of advance cash. But according to Moody’s the new bill will promote the transparency, accountability and discipline in the real estate market which is positive indication for homebuyers.