Deepika Padukone endorses Lodha’s weekend enclave

Fans of the Bollywood diva Deepika Padukone will soon see her endorsing Mumbai-based real estate developer Lodha’s premium weekend home development property around a riverside Greg Norman golf course. This exclusive enclave is a short drive from both Mumbai and Pune, conspicuously located on the Mumbai-Pune Express Way.

“It didn’t feel like I was working. It was more like enjoying two days of my weekend, experiencing this exclusive enclave… playing golf, relaxing at the spa, sitting by the river and watching a movie,” Deepika said in a statement.

According to the statement released by the company, This project will be a weekend home where residents can go relax, play a game of golf along with other outdoor sports activities, unwind themselves by the riverside promenade, entertain friends and family over the weekends and simply spend some quality time with family.

Sale of home spaces increase by 7%

According to a report by property research firm Liases Foras, during the quarter to December 2015, sale of homes across the top eight cities of India improved by 7% year-on-year. Sales increased by 15% on a quarter on-quarter basis on the back of sluggish pricing and discounts by builders during the same period.

As per the report, an aggregate of 78 million sq ft of home space was purchased across the eight cities compared with 72.9 million sq ft a year ago.

Pankaj Kapoor, managing director of Liases Foras says, “It is a buyers’ market today. Geographies, which were predominantly investor driven, are still suffering while areas which were inhabited and more suited to end-users are seeing improvement in sales. Now the gap between affordability and pricing is reducing.”

While the purchase of home space has increased, the unsold stock has also shown an increasing trend showing 21% y-o-y and 5% q-o-q to 1,124.9 million sq ft. Unsold inventory in Mumbai rose 28% to 235.9 million sq ft while NCR rose to 361.1million sq ft, up 14% over last year.

The top cities have witnessed a decline in the total new launches with a decrease of 11% in q-o-q to 67.1 million sq ft., with NCR witnessing 61% decline in new launches during the quarter. Out of the total launches 52% of the new launches are in the price range of Rs.25-50 lakh. The number of new launches in the affordable category of under Rs.25 lakh has increased by 50% from the previous quarter.

Noting this Manoj Gaur, president, Confederation of Real Estate Developers Association of India (CREDAI), NCR, and managing director of Gaursons India, a real estate developer said, “Pricing has stagnated and inventory overhang is reducing because of lower number of new launches. Prices are close to the bottom, so end users are finding value.” To clear their unsold stock, many builders offered significant discounts during the festive period in 2015. Out of the total sales across the top eight cities, 31% of sales were in the price range of Rs.50 lakh to Rs.1 crore and about 30% of sales were in the price range of Rs 25-50 lakh.

Suntek Realty

Mumbai-based premium real estate developer has announced the signing of a definitive agreement with leading global investment firm KKR for the construction of its flagship projects in the city. Under the said agreement, KKR’s investment vehicles, will provide funding up to Rs150 crore (US$22.4 million) towards the construction of Sunteck’s flagship luxury residential developments viz. Signia Isles and Signia Pearl to be located in Bandra Kurla Complex, Mumbai.

Talking about the partnership, Kamal Khetan, Chairman & Managing Director, Sunteck Realty Ltd., said, “We are excited to enter into a relationship with such a major and experienced global investor like KKR and attract this strategic investment. In the past, Sunteck has grown with a good mix of debt and equity with few and exclusive partners and going forward, looks at this transaction with KKR as the initiation of a long-term strategic partnership.   We see appealing acquisition and growth opportunities in today’s market and believe Sunteck can leverage its brand and execution strength – and that of its partners – to explore large acquisition opportunities in the near future.”

Sharing his thoughts on the partnership, Sanjay Nayar, CEO of KKR India was quoted saying, “We are delighted to have partnered with Sunteck. KKR’s investment in Signia Isles and Signia Pearl is the beginning of our relationship with the group. Sunteck has a strong reputation and execution track record in Mumbai, where we see compelling residential and commercial real estate investment opportunities. We look forward to deepening our relationship with the group to explore more of these opportunities in the future.”

Signia Isles and Signia Pearl, expecting openings in 2016,  has brought in lot of interest from high-profile tenants such as industrialists, senior executives of leading financial services firms and corporations, and Bollywood personalities.

Top cities in India which are offering houses in your budget

It seems like, years 2016 is positive for real estate developers as well as end users because there are several affordable housing projects in all over India which are ready for launch. Due to active and optimized urban planning schemes in Indian states and cities now the budgets for properties is somewhere affordable for specific segment, however; its still true that there are not much number of cities where you will find affordable property and in India its far-fetched dream common man to own a property in most of the metro cities.

With the boom in commercial real estate sector, now budget for personal housing is also shooting on high levels. In past few years, the real estate landscape has witnessed spatial transition and due to that it has led towards the consistent rise in the budget of the properties. According to recent report of JLL India, which is global property consultant firm, there are still some cities in India where housing is still affordable. As per the statement of Anuj Puri, Country Head of JLL India, “It is expected that 2016 will be good year for investment activities that were seen in 2007; the previous peak year which saw investments of more than $8 billion into Indian real estate”. The names of cities are following where you can grab your dream property in the budget of Rs. 30 to 50 Lakh;

• Hyderabad, Telangana:  Hyderabad is the combined capital of Andhra Pradesh and Telangana and it is also the centre of dynamic workforce and now again its trending the buyer’s market. In Hyderabad, there are many well-developed residential localities such as; Sainikpuri, Kukatpally¸ Miyapur and Manikonda where you can buy house in the budget of Rs 30-50 lakh. In simple words we can say that Hyderabad is perhaps one of the most affordable cities among all tier 1 cities of India.
• Pune, Maharashtra: In last two years, Pune has recorded good growth in terms of economy and growth in the affordable housing segment. Here you can buy affordable property of 1 BHK and 2 BHK in different areas. Apart from that people from high-end segment are buying 3BHK and 4 BHK budget homes. Pune offers better standards of living than any most other metros
• Jaipur, Rajasthan: Jaipur is one of the fastest developing city with many influencing growth drivers and due to that it has progressed tremendously in last three years. In Jaipur, there are some regions such as; Malviya Nagar, Tonk Road and Ajmer Road, which is good for investment deals. Currently, with annual capital appreciation of 12 to 17 percent, Jaipur holds great potential and promises good returns on investment.
• Ghaziabad, NCR: Ghaziabad is perfect destination for those who wish to buy property near Delhi, Noida and Gurgoan because here the supply of property is very high and its easy to find the budget home of Rs 30-50 lakh. Infrastructural developments such as the extension of the Metro Rail and the widening of the NH 24 will further boost Ghaziabad’s realty market.
• Nagpur, Maharashtra: We all know that Nagpur is city with extreme climatic conditions and in present Nagpur is one of the fastest-growing cities in our country. Apart from that now even state government is taking interest in turning Nagpur into the next IT hub of Maharashtra, the city is set for a major transition in its real estate profile.
• Kochi, Kerala: Now days builders are not focusing on affluent buyers, they are focusing on the affordable housing because in present there are huge demand of affordable housing and its accounts more than 60 percent of the total housing projects in the city. The increasing land prices have made it difficult real estate developers to build independent houses, and due to that now there is increasing demand from the emerging mid-income segment that wants homes packed with amenities at affordable prices.
• Coimbatore, Tamil Nadu: Currently, Coimbatore is a market which is responsible for the 40 percent real estate investments including cities Bangalore, Cochin and Chennai and apart from that professionals are also looking for property in Coimbatore because its emerging as a retirement destination and people are interested to buy 2 BHK homes in Coimbatore.
• Ahmedabad, Gujarat: In present, Ahmedabad is witnessing rapid infrastructural development in the form of GIFT Smart City¸ bullet trains and entrepreneurial nature of the population. The gas, oil and energy industries, petro-chemical industries and automobile manufacturing industries are some of the major factors driving perennial demand for real estate in the city. Currently, there are high demands of affordable property and due to that you can easily find properties within the range of Rs 30-50 lakh.

Real Estate in Mumbai

It is expected that the total estimate of rental income potential for Grade A commercial properties in top eight cities of India will be about Rs. 51,800 crore or USD 7.9 billion by the end f 2019, as per the reports of Cushman & Wakefield, a global real estate consultancy. However; the title of report is “Real Estate Investment Trusts (REITs): An Opportunity for Investors and Developers” and it was released on last Thursday.

It is expected that the upcoming supply of Grade A office properties of 160 million sq ft will add Rs 16,300 crore or USD 2.5 billion in the rental income between year 2016 and 2019. However; according to report of Cushman & Wakefield India, “The total estimated rental income between years 2015 and 2019 with existing inventory of Grade A office space will provide an opportunity to the REITs to generate the estimated rental income of about Rs 35,500 crore or USD 5.4 billion.

As per the report, it will provide a wide range of options to occupiers with the option of taping in the larger pool of human resource. Apart from that the listing of REITs in India will encourage the mid size development firms as they will be able to consider this avenue because REITs will provide them incentive and exits to develop high-grade buildings. On the time of implementation REITs were offering slew advantages and benefits to the different stakeholders of real estate market such as; investors, real estate firms, real estate developers and rest of real estate industry. REITs can invest in commercial properties in different smaller cities which can help in the rapid development because smaller cities put the pressure on the top few cities in India.

According to Sanjay Dutt, the MD of Cushman & Wakefield India, “It is expected that over all REITs system will provide a level-playing field to increase transparency in the real estate sector”. Mumbai has the potential to generate highest rental income for REITs till next three to four years while in 2016, in Bengaluru will get the potential to generate rental income equal to Delhi and NCR through the supply of Grade A office spaces. Probably this is correct time when real estate developers should stretch their balance sheets. It is expected that in near future REITs will help the real estate developers to resolve their fund-raising issues and allow real estate developers with an option to exit projects.

Managing Director and Chairman of Mantri Group- Sunil Mantri

Recently, the Bombay High Court asked Mantri to not to sell any property till next court orders and after this the Bombay High Court also appointed an official liquidator with an aim to took the possession on the properties of Mantri Group.

After coming in news or controversy; Sunil Mantri, the Managing Director and Chairman of Mantri Group resigned from the position of NAREDCO chairman. NAREDCO is an umbrella body of real estate developers.

When media tried to contact Mantri, so he confirmed that reports, but refused to provide any additional details. However; earlier it was report that Mantri has defaulted on sum of over Rs300 crore and after that all investors or creditors had appealed in the Bombay High Court with an aim to get the pending dues with an interest rate of 25 to 36 percent. According to reports, till now more than 60 investors and creditors had filed the cases against Mantri by stating that he has cheated on them as well as buyers and borrowers. According to reports now he will not be able to dispose any of his fixed assets which belongs from the company without court’s order.

However; a real estate developer from South Mumbai stated that in present property market is down and due to that developers are not able to pay back the loans and interests. Most of the real estate developers are launching the projects and with booking amount they are buying other properties. But if any plot comes under the under litigation, so it becomes very difficult to come out from that mess.

Indian real estate sector 2016

In present, the rest of the world is considering our country as the land of opportunity for investment and business.  If we are talking about the real estate scenario for 2016, so no doubt it could be great year for residential as well as commercial projects.

1. Residential Properties:

It is expected that year 2016 will not bring some great hope for the residential sector as demand will remain constant. However; we can expect that silver lining will shine more and bad days of the real estate segment will be bottomed out; as according to reports in some cities sales have picked up and these cities are; Mumbai, Hyderabad and Bangalore. However; you can expect less launch in the cities such as; Mumbai as inventory level is already high. Real estate developers initiatives such as; attractive schemes, freebies, deal terms and heavy discounts with lower interest rates by RBI have activated fence-sitters. It is expected that year 2016 will end the long and painful journey of real estate market and signal an upward growth trajectory. It will definitely mature further into an organized industry in which some lesser- organized players become casualties.

2. Office or Commercial Properties:

The absorption rate of commercial properties as well as office spaces are still at 35 million sq ft and it is second highest figure in the history of country after the year 2011. However; the PAN India vacancy is still at the 16 percent, whereas; the realistic vacancy actually stands about 8 to 9 percent. It is expected that in the year 2016 the demand will remain consistent as occupiers are showing a positive bias. The years 2016 will bring more demand for leased spaces however; the quality supply will be lower. It means in year 2016 we can expect higher occupancy for Grade-B office spaces.

3. Retail Properties:

In 2015, there were no launch for the quality retail space and the major trend which we observed in the year 2015 were; the consolidation of retail real estate by retailers and big brands are focusing on the profit making stores and they are closing down the loss making stores. These days there are more institutional investors and all credit goes to relaxation of sourcing norms as single-brand retail companies are able to explore the Indian market. It is expected that years 2016 will be good year for the retail investors as there are many ecommerce companies which are planning to set up their retail stores in near future. Retailers will have to revisit their real estate strategy and have a flexible approach, customized to different micro-markets.

Capital Markets:

The year 2015 was the interesting year for capital market activities in the real estate market as PE focus continued to remain high for the office and residential projects. The platform-level deals and entity-level investments are also came into the limelight as the level of confidence are increasing among the investors.  The income yield of the office projects are attracting the majority of equity investments and when it comes to the geographical spread, so we can say that tier I and tier II cities are good for the investment in the offices spaces because over there you can earn more rent.

Buy Property in Mumbai

If you are looking for the best time to buy property and you are looking for the indicators in real estate market such as; price and sales, so you can say that in many cities property market could be head for a revival. As per the reports of RBI, the average prices of residential units have increased by 13.7 percent in 10 major cities of the country in the period of July to September 2015. If we will see the brokers sales reports, so we can easily say that sales in real estate market have got a boost too.

According to one of the most reputed developer, “We are going for the pre-launch of our project because buyers are lined up outside of the office to book a flat. And at this point of movement we are expecting some good sales and price in near future”. According to statement of Sanjay Dutt, MD of Cushman & Wakefield, India, “It doesn’t mean that in near future real estate market will witness a turnaround, but it is expected that the trend will sustain for the next 6 to 8 months and we can call it revival”. The more he added that there are contradictions in the data as there are many launches in real estate market where buyers and investors are frenzy to buy. In past few months office and commercial demand has picked up, which means city is creating new job opportunities and if it will sustain for next few months so there will be a turning point for the industry.

Why it’s good time to buy property?

According to real estate experts, if you are end user, so it’s good time to buy residential property. As per the statement of A S Sivaramakrishnan, Head of Residential Services at CBRE South Asia, “These days smart buyers are already scouting for a property, as these days realtors are still flexible with the demand of buyers”. In Mumbai there are more than 77,000 apartments are in the inventory, as per reports of JLL India and it is expected that it will take 11 to 12 quarters to clear off that inventory against a healthy expected cycle of 5 to 6 quarters, as per the statement of Ashwinder Raj Singh, CEO of Residential Services at JLL India. The more he added that there are chances that developers will not raise up their prices if the sales pick up because it can make buyers uncomfortable.

Apart from that there are some developers in city which are offering flexible payment option with attractive interest rates, but they are aiming to sell houses at little higher price than the rates prevailing in those regions. Ashutosh Limaye, Head of Research at JLL India, Don’t just go by the quoted rate of the flat because developers might offer little lower priced with some additional charges such as; club fee, and fee for other amenities. Apart from checking the track record¸ titles and approvals, its recommended to check the discounts, offers and schemes for different real estate developers before making any kind of purchase, as per the statement of Mudassir Zaidi, National Director of Residential Agency at Knight Frank.

If you are looking for the under-construction flats, so its recommended to take some time and evaluate the projects and ideally buyers should take 30 to 60 days to visit the site and check if the construction is happening as per schedule or not. If there is any kind of deficit, then better to stay away from that project. However; buyers can find the good deal for old flats, which was constructed 5 to 10 years ago. Apart from that if you are at real estate investor, so better to wait and watch for the trends and developments for next two to three quarters.

Image Credits: DNA

If you are the one who is cursing the Mumbai city due to lack of space, proper amenities and other shortcomings, so here are some heartening news for you; Mumbai is one among top five emerging world cities. According to the report of JLL, a global property consultant, “Mumbai is 4^th on the list of emerging world cities, however; the top three are Shanghai, Beijing and Dubai. Apart from Mumbai; New Delhi and Bengaluru were also in the report which titled “Globalization and Competition: The New World of Cities”.

In report, According to JLL emerging world cities are the business capitals of major economies as these cities are experiencing higher growth percentage, attention of governance and implementation of strategies to become more stable and establish regions. These cities often get support from the national government, as government is in the process of economic adjustment and busy in the restructuring and optimization of urban and metropolitan regions for the benefits of global engagement. The report explains that Mumbai is witnessing urban consumer demand between now and 2030, along with other regions such as; Jakarta and Istanbul. According to experts, this growth can help the retail sector as demand and supply ratio is different in these cities as per region preferences and requirements.

JLL Report Findings:

According to report, it is expected that 26 percent firms have the revenue of more than $ 1 billion and by the end f 2025 this share could reach 50 percent. However; report, also pointed out that in present real estate market of Mumbai is performing well as it is attracting real estate investment and outsourcing activities, but still at certain points its facing chronic infrastructure supply challenges and these challenges can be hurdle for transnational firms. Apart from that Manila and Jakarta also reported the same issue. In these cities transnational firms are performing well as they are able to expand their operations in South and South East Asia in very low cost with huge market opportunities, whereas; on certain pints they are also facing considerable urban infrastructure shortages.

Recommendations of JLL:

It is recommended to these cities that now its need of time to focus on the other aspects such as; reducing complexity of preparation, assembling and project execution because it could prevent capital investment budgets on a year-by-year basis. However; there are substantial improvements in Mumbai as government has taken steps to improve transparency, reduce red-tapism, and strengthen governance with aim to reduce the complexity in execution of projects. For example; In Mumbai the civic corporation has cut building permissions from 150 to 70 and it also reduced the time limit to give such permissions. Apart from that state government is also working on a plan to digitize permissions which real estate developers need. It is suggested that there is need to address three major issues as it could be hurdle in the growth and success of the cities and these three issues are; how to build and sustain multiple sources of investment, how to attract talent and local skills and co-ordination in metropolitan space.

In the absence of strategies and systems of address these issues, the emerging world cities will struggle and find it difficult to manage their growth effectively in the ratio of economic development.

Arbaaz Khan Inaugurated Indian Property Show

According to experts, in present real estate is one of the most profitable and secure investment instrument in India and the main reason behind that is the depreciation of Rupee and ease of FDI flow as well as upswing in NRI investments.

On December 5, 2015; in Dubai UAE the most awaited and popular exhibition of Indian properties was inaugurated by Arbaaz Khan, Bollywood actor and Brand ambassador of the Indian Property Show. This Indian Property Show was held at Dubai World Trade Centre for the duration of 4 days ie. December 1 to December 3, 2015 between 11 AM to 8 PM, during the property expo more than 170 developers, Banks and cream of the Indian real estate construction companies participated with more than 600 projects. In this property show entry and parking of vehicle was free.

Details about Indian Property Show:

In this Indian Property Show there were more than 170 exhibitors including real estate developers, construction companies and Banks, however; more than 600 projects were on display. The main attraction of the property show was that here real estate developers were offering amazing discounts with free tickets for visitors, apart from that there were also the kid’s competition which was worth AED 44000 in the form of an apartment worth Rs 25 lacs. In Dubai or UAE this property show was ideal for those who wish to invest in Indian real estate sector as this property show was exploring a variety of properties in India and people have an opportunity to interact with developers on one-on-one contact.

Attractions in the Indian Property Show:

To attract the investors, there were many banks with an aim to finance their investments and apart from that there were attractive promotions pre-launch offers, lucrative discounts and free gifts such as; free air tickets to visit the property in India. Apart from that for children’s there were a special art contest in which they were able to win the gold bars worth AED 44000. First time ever in any property show children have become an integral part of the show as organizers was offering exclusive drawing contest for the Children’s who were between the age of 5 to 8 years and 9 to 12 years. The theme of the contest was “Draw Your Dream Home” where winners in each group were awarded with 100 gms, 50 gms, 20 gms gold bars.

Importance of Indian Property Show in Dubai, UAE:

In present, NRIs (Non-Resident Indians) are extremely active in Indian real estate market and according to reports; NRIs are among the top five investor communities in the Indian realty sector. Apart from that they also have natural affinity to India and due to that NRIs are seeing higher intrinsic value for Indian real estate market and due to that they prefer to own property in India rather than owning property anywhere else in world. And now depreciation of Rupee and ease of FDI flow has provided them reason to invest in India.

According to Sunil Jaiswal¸ President of event organizer Sumansa Exhibitions, “Due to  rupee depreciation by 20 percent against US dollar, it perfect time for NRIs to investment in India and apart from that the other driving forces are; that real estate sector is one of the fastest growing sector in India and it is able to provide big and secure returns with more positive prospects. There are some projects which are coming up in 100 smart cities and these projects have captured NRIs eye with the government easing FDI flow in such projects the investment is expected to boost further”. The more he added that Due to easy payment plans which real estate builders are offering its affordable to manage the investments for affordable smaller units as major developments are coming up in Tier II and III cities and it is expected that investment of NRIs will improve the outlook of property market in India. However; Pune Chennai, Mumbai and Hyderabad are the cities which are most popular among the NRIs due to higher chance of capital appreciation, however; according to property experts, cities like; Chandigarh¸ Jaipur, Coimbatore, Kochi and Indore will come in focus till next year”.

Participants of Indian Property Show:

In Indian Property Show, there were plethora of choice with more than 170 exhibitors, who were there for displaying more than 600 projects with ample opportunity to browse and find the best suitable property in terms of size, city preferences and budget. The main hosts of the property show were some of the best Indian developers such as; Indiabulls¸ Lodha Group, Bhartiya City, L&T, Sobha Developers, Rachana Lifestyle, Unique Group, JP Infra, Sheth Creators, Akar Realty, Sunteck India, Mantri Developers, Ozone Group, Kanakia Kalpataru, Jaypee Greens, ATS Satya¸ Supertech, LifeSpaces, Godrej¸ Saarthi Group, Suvilas Rajesh, Unnati fortune¸ Antriksh and Risara . Apart from that for visitor there were choice to buy property in preferred cities of country such as; Delhi, Noida, Greater Noida, NCR, Navi Mumbai, Gurgaon, Kolkata, Goa, Ahmedabad, Mumbai, Pune, Chennai, Jaipur, Coimbatore, Hyderabad, Bengaluru ,Mangalore and Kochi.

Informative Seminars and Sessions:

All the visitors at the show were able and allowed to attend free interactive seminars for three days which was conducted by the real estate developers and major finance companies and it was the main highlight for this year’s property expo, apart from that people appreciated sessions on Property Taxation, however; the other sessions were; Property Investment in India¸ Taking Care of the Legal Angles, Vaastu, Know Your City, NRI Guide to Property Investment in India, Residential Real Estate Hot Spots in South india and more. Legal experts, also help the investors to take informed decisions on the various aspects of property purchase. Apart from that legal experts were also helping the NRIs to sell their existing property in India at good price.

There were many projects which was offering different kinds of promotional schemes, discounts and free gifts such as; Property Dhamaka offers low-interest loans and fabulous discounts with free air tickets by Jet Airways. Bhartiya City and Indiabulls were the Platinum Sponsors of the property show with Jet Airways,who was the Official Airline Partner. However; AajTak and Sony Times Now were the Official Television Partners and 89.1 Radio 4 was the Official Radio Partner of the Indian Property Show.