Tata Housing plans to develop 20-mn sq/ft land in 8 cities

Tata Housing, the realty arm of Tata Sons plans to develop 20 million sq/ft land in eight cities in India which include Bengaluru, Delhi-NCR and Mumbai over the next few years. The company already has 29 projects and 70 million sq/ft land under various stages of planning and execution across 13 cities.

The managing director and chief executive Brotin Banerjee of Tata Housing told reporters,   “we have additional 20 million sq/ft land for development in the pipeline . We are in talks with the land owners in this connection.”

Speaking on the sidelines of a social cell initiative by Tata Housing where homes will be sold through Facebook in Goa ranging from Rs. 29 lakh to Rs. 50 lakh between October 26 – 28, he added that the additional 20 million sq ft land parcels throughout India will be developed in the course of next few years.

The company has already delivered 5,000 homes during the last 3-4 years and it plans to deliver another 4,000 homes in the remaining part of the current fiscal. “We will be launching four residential projects during October-December,” he added.

Uber Luxury apartments in Bandra – Kurla Complex

BKC (Bandra – Kurla Complex), which is turning to be the next leading commercial business districts in Mumbai, is now also the residential hub of HNIs (high-net worth individuals), industrialists and other big names of corporate, as they are booking their ultra- luxury apartments. As per the reports, these people are paying between Rs. 35 crore to Rs. 60 crore for uber – luxury apartments in the Bandra – Kurla Complex, however; some other high ended residential projects are demanding the value of Rs 55,000 per sq ft.

Ultra-rich buyers, who booked their apartment or duplexes in Bandra – Kurla Complex:
The few names who have booked their dream duplexes in BKC (Bandra – Kurla Complex) are; Vikram Pandit Co-CEO of Deutsche Bank for Asia/Pacific, Nimesh Kampani, Kishore Lulla from Eros International, Gunit Chadha, Chairman of JM Financial, Harsh Mariwala from Marico, Ashok Wadhwa from Ambit Holdings, Jalaj Dani from Asian Paints and Gautam Adani Ex head of Citigroup. It is also noticed that the Surat – based diamond merchant , Hitesh Patel, who was the highest bidder for the suit of PM Narendra Modi booked their choice of apartment in BKC, CEO of Citi India, Pramit Jhaveri and MD and Country Head of Credit Suisse Mickey Doshi are among those who have booked their duplexes in BKC (Bandra – Kurla Complex).

Most of the ultra-rich buyers book their luxury duplex in Bandra – Kurla Complex not for investment, but for living and staying here due to the strategic location of BKC. All the ultra-luxury flats in Signature Island, among residential projects which was constructed and build by Sunteck Realty in the Bandra – Kurla Complex’s G Block. However; these apartments are coming in two different sizes as the bigger one is of 11, 000 sq ft whereas; the smaller one are about 7, 000 sq ft.

A report from Cushman & Wakefield, said that presently BKC doesn’t have enough residential developments due to lack of ultra rich buyers. Whereas; the corporate clients of BKC can be identified by their high-income that ranges from mid management people to high management people from top level organizations. In shot we can say that this is class of people who have much more purchasing power than anyone else. It can be noticed easily if you are working in BKC commute and you are coming here from far-flung suburban areas or south Mumbai or central Mumbai,. so it will take two to three hours in travel on daily basis and this can be main reason why real estate developers are developing high – end housing units in BKC, but still some of the real estate developers has not tapped the complete demand of residential space in BKC.

The report also stated that, once develop as ultra rich destination, so it will becomes the house address for ultra rich corporate people and it will also serve the sub – markets of Mumbai such as Worli, Thane and Bandra. It is central location and has easy connectivity with other parts of Mumbai including both south and north Mumbai. However; there is gapping difference between the number of residential units which is launched in BKC and non-BKC location. Approx. more than 4, 300 residential housing units have been launched in the catchment area which includes non-BKC as well as BKC area of which only 220 units belongs from BKC.

On Sunday, Two-days Times property exhibition kicked off at the Clube Tennis de Gaspar Dias hall, Miramar, where more than 10 well known real estate developers have showcased their properties and latest projects. Jai Bhuvan builders, Sinari developers, Shah Housing, Devashri builders, Vision developers, CMM Stores and Dempo builders were among few real estate developers who have showcased their residential projects.

Times property exhibition was perfect destination for those who were looking for premium properties as well as affordable properties because here one-bedroom flats, duplexes and luxury residential villas were available. With a wide variety of homes to choose from, residents of Goa were keen to find their own space to call home are spoilt for choice. The exhibition offered Goans a unique opportunity to review and select the most suitable residential or commercial project to call their dream office or home.

Here wide ranges of properties were available, which was good enough to appeal to every budget and with new projects coming up in various parts of Goa, location cannot be a problem either. After a slow down, there seems to be a revival in the real estate business with several promoters launching new projects. Some of the people queuing up to check the projects are also eyeing second homes as an investment.

CREDAI showcased 500 projects in Real estate Exhibition at Nashik

In December, 2014, the real estate expo- Shelter 2014 was organized by the Confederation of Real Estate Developers Association of India (CREDAI) at Nashik. It has showcased around 500 residential projects with close to around 5,000 apartments. Municipal commissioner, Praveen Gedam and City Mayor, Ashok Murtadak have inaugurated the four-day exhibition at Dongre Hostel Ground along the Gangapur Road area.

Naresh Karda, the secretary of CREDAI, Nashik, stated that, “The response in the real estate exhibition was excellent and more than 100 real estate builders or developers from across the city have participated in the exhibition. The exhibition has showcased more than 500 residential projects where each projects were having the flats ranging from five to 100 flats or more. The more he added that, “Our main aim was to bring the different projects of city at one platform to facilitate and help buyers. This exhibition has saved the time and it has provided various options for properties at every location. It has helped the buyers or end users or investors to know property prices in all over the city and country.

It was the seventh edition of Shelter 2014, and one of the largest real estate exhibition in north Maharashtra as it have a total of 328 stalls. Different properties such as; flats, row houses, twin bungalows, farm houses and other properties were showcased at the expo. Apart from real estate builders, financial institutions and banks have also participated at the expo to help the consumers in home loaning process.

Vigneshwara Developers Pvt Ltd, MD

Despite a spate of fraud cases involving the unscrupulous builders and gullible investors being reported almost every alternate day, it seems the common flat buyers and investors have not learn’t a lesson.

In a repeat of sorts, the Economic Offences Wing (EOW) of the national capital recently nabbed the managing director of a prominent real estate company for allegedly cheating around 700 hundreds of investors to the tune of Rs 1,000 crore.

Shockingly, nine FIRs were registered against the accused, Sunil Dahiya, at various police stations across the National capital region and he was wanted in several cases of fraudulent cases, the police told newsmen after arresting the builder.

Addressing newsmen, Mangesh Kashyap, DCP, EOW said that the police team laid a trap at Sunder Nagar after getting a lead on him. As soon as Dahiya drove to Sunder Nagar in a chauffer-driven BMW car and stepped out. The police team pounced upon him, caught him and brought to EOW’s headquarters on Mandir Marg where he was grilled for his involvement in the mega-scam, Kashyap informed. The car in which Dahiya was traveling is registered in the name of Vigneshwara Developers Pvt Ltd and has now been seized by the EOW. Dahiya was produced in a court, which remanded him in police custody.

The top cop informed that as many as eight mobile phones, an iPod, a laptop, several credit and debit cards and other documents were seized from him.

In a brazen challenge to the law, the builder who knew all the time that the police were following him and that he was under the watch, still tried to evade arrest by staying in various five-star hotels for many days. The day he was arrested, he was planning to leave for Chandigarh but his luck ran out and was arrested.

Revealing the extent of fraud, Kashyap said that at least 700 people had invested in the two projects. “Till now, the EOW has got complaints from about 350 investors who have been allegedly deceived to the amount of Rs 160 crore by the accused company’s directors,” Kashyap said. The total amount of their fraud exceeds Rs 1,000 crore, the police said.

Disclosing the modus operandi of these the directors of the realty firm, police said that the directors Sunil Dahiya, Sanjay Dahiya and Daryao Singh allegedly attracted people through advertisement in print and online media. They also gave personal assurances to investors that they would benefit if they invested in their projects. They made unrealistic promises to the investors about the project assured high returns, but they neither paid the returns nor fulfilled the promises about completion of the projects. The investors were enticed to sell off their immovable properties to Vigneshwara group under the barter transaction. Though the directors made the payment against the sale, they got the same invested back in its projects and thus retained their sales proceeds. The realty firm lacked the necessary approvals required for completion of the residential projects, Kashyap said.

Real estate development across Eastern suburbs

Eastern Mumbai suburbs are among of the fastest growing residential centres in Mumbai metropolitan region. This area is advantageously located in proximity to other industrial sub-markets such as Bhiwandi, Badlapur, and Dombivli-Kalyan. Situated in Mumbai Metropolitan Region, these eastern suburbs have attracted a lot of heavy investments from established builders and developers.

The Mumbai Metropolitan Regional Development (MMRDA) authority has developed several residential zones that have led to this sub-market’s emergence as a major residential hub. The demand for homes from workers employed in these industries is therefore considerable and constantly rising. This provides eastern suburbs with all the attributes of an ideal real estate investment market, offering low entry points and high appreciation potential. Developers have already acquired large land parcels in eastern suburbs, while others are actively seeking such parcels for development. Some residential projects by elite developers have already been launched. This sub-market has especially high potential for integrated township projects and affordable housing undertakings. The eastern suburbs will continue to attract demand from the large existing workforce as well as additional manpower that will migrate there over the course of the next few years. The government of Maharashtra has already extended the jurisdiction of the MMRDA for the eastern suburbs up to Kasara and Karjat. The planned infrastructural initiatives in this region will further aid the emergence of these suburbs as a major real estate growth node. There are plans to set up a cargo airport, with industrial firms from abroad showing keen interest in establishing their manufacturing facilities in the area. With industrial growth acting as a pull factor for this sub-market, real estate development across the eastern suburbs’ various segments will find increasing traction going forward. The real estate story has just begun for Mumbai’s eastern suburbs. Residential prices in these areas are already up and give every indication of healthy rise in the future. This is a market that is especially appealing for large plot investments, and long-term investors who value the success formula of its unique combination of growth drivers.

These days, Boisar in Thane is growing as one of the favorite destination for established real estate developers to launch affordable projects. Here buyer can own a home in very reasonable price, which starts from Rs 15-25 lakh. Some big names are such as; Mahindra Lifespaces and few mores are undertaking the residential projects in Boisar and later these projects will cater the demand of homes in affordable price. Soon this locality will tout to be the hub of premium affordable homes in Mumbai.

What attracts the real estate developer in Boisar?

Now big names of industry have started the real estate projects and because of that this location is known as the hub for affordable homes due to availability of easy parcels of land. Real estate experts are saying it’s just a simple demand supply statistics, and said that it is expected that Boisar will receive the proper local demand for home in affordable price from those people, who are working in the Boisar Industrial area. These peoples are looking or homes in the range of Rs 10-15 lakh budget. This current demand always existed in the locality for real estate investment. Boisar locality is also witnessing the high demand from nearby locations such as; Virar, and more because these locations have gradually become expensive.

Buyers are not comfortable to buy property in Virar region due to increased property prices.  Boisar is one of the perfect locations where one can buy the property in affordable price with quality and basic amnesties. Boisar location is the preference of buyers to find the home within the Mumbai municipal limits beyond their means. Developer are realizing that people are targeting the Boisar region for owning the property, and the locality also offers the large land parcels, which are comparatively cheaper for developers to acquire land.

Boisar is also one of the best regions for investment as projects that were launched before three years with Rs 1,500 per sq ft are now stands in the range of Rs 3,000-4,000 per sq ft. Locations in affordable price is the primary venues for commercial establishments like; SEZs, IT parks and many more corporate houses because they are moving in these areas for better space availability in low price and also to access the suburban manpower. So, if you are looking for affordability near Mumbai than buy the property in Boisar because here you will not have to compromise on amenities and luxury.

Do you know property frauds worth Rs 1600 crore are reported in Maharashtra? As per National Crime Records Bureau (NCRB), Maharashtra comes second in terms of realty fraud in the country. Delhi of course tops the list of property fraud cases. In Delhi, as per the around 181 cases of loss of property were reported during the year 2013. The worth of properties is estimated to be around 3,000 crore.

Maharashtra came a close second with 176 cases of fraud worth 1,600 crore and Punjab reported 82 cases of realty fraud worth 500 crore cases.

At least eight cases were for loss of property under the category criminal breach of trust. These were for properties worth 1 crore to 10 crore. Under the category of cheating, there were 102 cases for properties worth 1 to 10 crore, 43 cases of cheating for properties worth 10 to 25 crore and 22 cases of cheating for properties worth 25 to 50 crore. There were three cases of cheating for properties worth 50 to 100 crore and three cases for properties above 100 crore. Citing a sample fraud case, a NCB official told newsmen he said one Sameer Pande, an investor, booked two apartments in an under construction building through a broker in 2012, who promised him a 2% commission which helped Pande maintain cash flows in the short term. However, instead of getting a proper letter committing the 2% commission, Pande got a bogus note, which should have warned him of the broker’s premeditated intention to cheat. The case is currently with the Economic Offences Wing.

Faced with depleting revenues due to the economic slowdown and rising inflation, industrial units around Mumbai, Thane, Pimpri Chinchwad are diversifying into the real estate business to develop additional sources of income.

Many companies are converting their land holdings from industrial to residential purposes. For example, so far the Pimpri Chinchwad Municipal Corporation has converted 5.32 lakh square metres of land from industrial to residential use and residential buildings have been constructed on these sites.

A few decades ago, when industrial development was being promoted in Thane and Navi Mumbai, the government had acquired land from local farmers and handed it over to the industries. With changing economic conditions, many industries shifted their production units out of Thane, Mulund, Bhandup, leaving many plots vacant. Taking advantage of the real estate boom, many industrialists have started converting their plots from industrial to residential. So far 30 companies have applied for the conversion.

Sandeep Belsare, secretary of the Pimpri Chinchwad Small Industries Association, said that although all necessary facilities are available in the city for industries, production costs have remained high compared to other places. Hence, all big manufacturers have shifted their bases elsewhere in the State or outside the State.

On account of the shifting of the big companies, small industries are not getting enough work, which is hurting their revenues. Moreover, rising real estate prices present a lucrative option for companies to change the purpose of their vacant plots from industrial to residential. Most industrial units are moving their facilities away from residential areas due to stringent safety norms and space constraints in such areas, said Anant Sardeshmukh, Director General, Mahratta Chamber of Commerce Industries and Agriculture (MCCIA).

Digital technology has touched every part of our life. So how can the multi-billion dollar realty sector remain untouched by it?

Right from setting up branded YouTube channel that showcase walkthroughs of upcoming projects, to hiring social media marketing firms, real estate players such as Godrej Properties, Tata Housing and Adani are joining the digital media marketing bandwagon in a bid to strengthen sales.

Real estate developers in Mumbai and other metropolitan cities have taken to digital media in a big way to boost sales, sidelining the print media. The reason is not far off. Not only are the developers finding digital media cost efficient but also increasingly effective in enhancing conversion rates.

Not only are the developers finding digital media cost efficient but also increasingly effective in enhancing conversion rates. So on one hand while Tata Housing saw over 10 bookings in first few hours of going live, Godrej Properties finds 20 per cent of its sales coming from online play.

The Mumbai-based real estate developers recently found success in the three-day ‘Great Online Shopping Festival’ where Google in association with Tata Housing offered prospective buyers of houses and encouraged them to book a flat or apartment by the company. Moreover, Tata Value Homes (TVHL), a 100 per cent subsidiary of Tata Housing recently received over 200 applications online within three hours on the National Home Buying Day. For Godrej Properties as well, the number of online enquiries for its projects has more than doubled over the past few months.

In the aftermath of the success of both Great Online Shopping Festival and National Home Buying Day – where both the marketing of the sale, and the transaction itself, were conducted purely online – we plan to add several more to the calendar, providing consumers more frequent avenues for accessing quality homes. This is emerging as an exciting option to target HNI’s and NRI’s,” says Brotin Banerjee, CEO and MD, Tata Housing.

A study by Google India says: The internet is influencing consumer behavior as 7 out of 10 buyers know the exact brand and model they want to buy with the help of online research.

Says Girish Shah, Executive Vice President (Mktg & Sales), Godrej Properties Ltd: “We use digital media to build communities of like-minded individuals, without an overt brand presence. This allows for a lot of creative flexibility and the ability to co-create products by crowd-sourcing trends and preferences. We also use it to convey transparency and are probably the first real estate brand in the country to have branded YouTube channel, which has sets dedicated to walkthroughs, news about the brand and project updates,” says Girish Shah, Executive Vice President (Mktg & Sales), Godrej Properties Ltd.

The realty developers not only run contests on Google plus and LinkedIn to connect with diverse customers, but also have integrated IP-based calling that is connected to call centres that are trained to handle specific campaign-related enquiries.

If that is not enough, developers have also begun taking help of professional digital media marketing firms for enhancing their web presence.”In the recent times, a number of our new clients have been from the real estate industry. Real estate developers this year have found it hard to continue business only through the offline media platform and have, hence, begun outsourcing their digital media activities to firms like us to enhance their web presence and bring in increased conversions,” said Anshul Gupta, chief executive officer, Digimedia, a Mumbai -based digital marketing firm.

What also has been attracting real estate developers to the platform is the cost efficiency. Dipesh Roy, vice president (marketing) Adani Township and Real Estate Company says: Digital media tends to cost us one tenth of the conventional print and outdoor platforms and yet bring in at least 40-45 per cent conversions which is only growing. Also, there are lots of leakages in the conventional platform whereas the digital platform can be used to focus only on the target consumers. We have seen that out of 10 people using digital platform for our projects, nine have come to see the product.