Mumbai sees Highest Price Appreciation

1:30 PM

Lodha launches Luxury Housing Project at Worli

10:00 AM

Lodha launches Luxury Housing Project at Worli

The group is offering a fully-integrated community with high rises, townhouses, bungalows and luxury retail, with around 85 per cent of the development as open spaces

Super luxury is the USP of The Park residential project at Worli in central Mumbai. The Lodha group purchased this plot from DLF for Rs 2,727 crore last year, and now, using a lush park as its centre point, the group plans to develop a variety of different projects around it, ranging from high rises, townhouses, bungalows as well as luxury retail.

“Around the world, the finest living spaces are set alongside great parks that become an intrinsic part of the lifestyle of the residents. The Park is a rich landscape designed to provide a multitude of experiences and a diverse range of environments, offering a global luxury living experience for well-travelled and discerning homebuyers,” said the company’s managing director, Abhishek Lodha.

A part of the 17-acre property has been designed as a tribute to nature with seven acres set atop a 70 ft hill. Inspired by the great urban parks around the world, The Park offers an ideal urban lifestyle, one that is at present not possible in Mumbai. “This seven acre space is actually equivalent to six football fields put together, or about one and a half times the size of the world’s largest cricket ground – the MCG (Melbourne Cricket Ground),” Lodha claimed. Different world class designers, architects and brands will come together for the mixed use development much like the development around New York’s Central Park, he added.

The project will be a fully-integrated community with a choice of playgrounds, a treehouse for children, a clubhouse, concierge services, a gourmet dining options, retail plaza and India’s first Evander Holyfield gym. Around 85 per cent of the development will consist of open spaces, including organic gardens, picnic gardens, a “wetlands” garden and a butterfly island.

“During the construction phase, we expect to generate more than 5,000 jobs,” said Lodha, adding that a development of this scale will also support more than 10,000 indirect jobs in allied industries like cement, steel, tiles and cables, among others. Once The Park is completed, it will give rise to over 500 full-time jobs in the areas of facility management, housekeeping, horticulture and retail, he said.

Incidentally, Aishwarya Rai Bachchan is a future resident and brand ambassador for The Park.

by Jharna Mazumdar for Financial Chronicle

Aishwarya Rai Bachchan

Lodha launches New Project 'The Park' in Worli

9:00 AM

Abhisheck Lodha

Abhisheck Lodha - We did highest net sales in real estate segment last year

8:30 AM

We did highest net sales in real estate segment last year: Abhisheck Lodha

Interview with Managing Director, Lodha Group

Mumbai-based Lodha Group, is one of the largest land buyers in Mumbai and one of the few developers who are launching large township projects in the city.

On the sidelines of project launch on the plot the company bought from DLF last year for Rs 2,727 crore, Abhisheck Lodha, managing director, Lodha group, talks to Raghavendra Kamath about the company and its strategy.

What is giving you the confidence to launch new projects when property market in Mumbai is down for a long time?

We are still doing good sales. Last year, we did net sales of Rs 8700 crore, which is highest in the country. This year, we are looking to cross those numbers. I think all credible players are doing well. Be it Tatas, Sobha or Prestige, everyone is doing good numbers.

How many apartments you handed over last year and how many you are planning to deliver this year.

Last year, we handed over 3000 apartments and this year, we will do 5500 apartments.
A rating agency said you have a debt of Rs 4750 crore on account of projects you have undertaken in the last couple of years.

Do you have sufficient cash-flows to service your debt.?

We have one of the healthiest debt to equity, debt to sales and debt to cashflows ratios. We will have cashflows of Rs 3000 crore in FY 2014 and we had Rs 2500 crore cashflows last year. I can no talk on the exact debt to equity ratio and total debt. We have the best credit facilities in the country and our average cost of funds ranges between 10.5% to12%.

Do have any plans to go public?

We do not have any plans. Why should we go for IPO when we have surplus cash-flows of Rs 3000 crore. What you do with public money?

Do you think you have gone overboard on land buying and launches especially when a couple of Mumbai developers have defaulted on payments?

We feel ultimately we are in the business of buying land, building properties and selling it. Our land buying, sales and construction/deliveries are in perfect sync. We are strong position because we bought land at very good rates. When we did deal with DLF, we bought the property for Rs 5,500 a sq ft while people were buying land for Rs 15,000 to Rs 20,000 a sq ft.

Tell us about the project on land bought from DLF?

We got applications worth Rs 5,500 crore the project ‘The Park’ which was earlier code-named at ‘Blue Moon’. We accepted applications worth Rs 3,500 crore. WE launched two towers and sold 700 apartments. Average sales realization was Rs 28,000 per sq ft in that project. People would have got returns of over 20% since the pre-launch.

Source : Business Standard

Buying Property Aboard

Curb on Overseas Property Buy may Boost Indian Realty Market

3:30 PM

Curb on overseas property buy may boost Indian realty market

Individuals with Rs.10-15 crore set aside for property investments abroad are already making enquiries in India

In recent times, there has been a surge in Indians buying properties in countries such as Dubai, Singapore, Malaysia and the suburbs of London. Indians occupied 2% of new residential buildings in London in 2012, a growth of 0.9% from 2011, according to real estate consultancy Knight Frank.

Mumbai: The country’s real estate market may get a boost following the central bank’s restrictions on Indians investing in properties abroad.

Rich individuals typically with Rs.10-15 crore set aside for property investments abroad have already begun enquiring about real estate opportunities in India, say property consultants.

To protect the falling value of the rupee, the Reserve Bank of India (RBI) on Wednesday announced measures aimed at moderating capital outflows, following which individuals cannot buy properties abroad under the Liberalised Remittance Scheme (LRS).

Moreover, the limit for remittances by resident individuals under LRS has been lowered from $200,000 to $75,000 in a fiscal year. In February 2004, RBI under LRS allowed Indians to invest abroad with an initial limit of $50,000, which was raised to $200,000 in September 2007.

“Individuals who were planning to buy international real estate at attractive valuations and planning for their kids’ education and housing abroad will now see such plans challenged,” said Om Ahuja, chief executive officer, residential services, at Jones Lang LaSalle India, a real estate consultancy.

“The investors have already started talking about their change in investment plans,” said Anuj Nagpal, managing director, investor services, DTZ India, a real estate consultancy.

“This is likely to give some boost to the real estate demand in the country, especially in the premium and luxury segment as these investors are majorly (for) high net worth individuals,” he said.

“The investment split for all overseas buyers is 65% for investment, 33% for education, 2% for a second home. For Indians, second homes may be closer to 5% and (they) had spent an average £1.5 million per unit in the prime market in 2012,” Liam Bailey, global head of residential research at Knight Frank, said in an interview on 17 March.

Investments in overseas markets typically fetch a rental yield of 5-7%, more than the prevailing 1-3% yield in India, according to industry experts.

“The major impact of this policy change could largely be realized in three main asset classes within real estate—serviced apartments, retail and semi-luxury residential in tier 1 cities. The market for all these segments has been subdued for a while and this could be a positive trigger,” said Samir Jasuja, founder and chief executive of PropEquity, a real estate research firm.

Some investors have already started making alternative plans and there will be more demand for assets in residential and commercial properties across geographies within India, say experts.

“Investors would look for places where they get maximum rental yields. Bangalore, Hyderabad and Chennai markets are reasonably priced and would be preferred to Mumbai and Delhi, where the yields are a meagre 2%. Hyderabad residential properties have a yield of 4%,” said Ahuja.

Anand Moorthy, head of real estate services at RBS Financial Services (India) Pvt. Ltd, believes people with Rs.5 crore or more set aside for investments would prefer high rent yielding commercial assets over residential properties.

“Prime residential markets have not had much capital gains in the recent years. So there will be shift in preference for other asset classes. Demand for pre-leased assets such as IT (information technology) parks, warehouses, etc., with a yield of 7-8% is going to increase,” he said.

by Unnikrishnan. S for "Live Mint"

Buying Property Aboard

Back RBI chokes Foreign Home Buys

9:05 AM

Back RBI chokes Foreign Home Buys

If you had the money and were looking to buy a house abroad, you can't any longer, in effect.

On Wednesday, RBI reduced the cap on individual remittances abroad from $200,000 (about Rs 1.2 crore) to $75,000 (Rs 45 lakh) and also barred individuals from using funds under the scheme to buy immovable properties abroad. The moves were largely aimed at arresting the fall of the rupee, by curbing foreign exchange outflow. In 2012-13, says RBI, $1.2 billion was sent under this scheme, of which six per cent or $78 million (Rs 480 crore), was used to buy houses. Experts said this amount would fall sharply. "Earlier, anybody could buy properties. If there was a family of four, the total permissible amount was $800,000, a sizable amount to buy properties abroad," said Santhosh Kumar, chief executive (operations) at global property consultant Jones Lang LaSalle.

Buying property was one of the top five reasons that Indians sent money abroad, even ahead of sums spent on meeting travel expenses or medical treatment. The trend was on the rise; outward remittances in this segment increased in May this year to $7.2 mn, compared to $5.9 mn in May last year.

Experts say investors purchase property abroad to hedge their risk. In other words it is a means of holding assets in a currency other than the rupee. Maintenance of close relatives, investment in equity/debt, gifts and studying abroad are the items on which outward remittances are used the most.

Karthik Jhaveri, director, Transcend Consulting (India), says, "This is bad news for investors who were looking to diversify their portfolios by investing abroad. People invested in real estate abroad as valuations there are great and also so that they can offset risks arising out of global political and economic uncertainty. It was one of the best ways to build a smart portfolio."
Ashutosh Limaye, head-research at Jones Lang LaSalle India, says: "We think it's a temporary measure. This freeze should be lifted, hopefully, in two to three months."

According to a Kotak Wealth report, expansive tracts of land that can accommodate swimming pools, lawns and courtyards are easily available in many American and European cities, due to better city planning and lower population density. Also, for many wealthy people, owning a home abroad is not purely for investment or a luxury purpose. Many travel extensively and also send their children abroad for study. Hence, having a property abroad is convenient.

Some global studies reveal that property prices in Mumbai are now comparable to prices in cities such as Los Angeles, Miami and Rome, among others. A clean environment, better managed public infrastructure, entertainment facilities, good health and sanitation facilities are some attractions.

Currency fluctuation is another important factor that is considered while making the purchase. In recent years, one major attraction for buying property in London has been the depreciation of the pound against dollar, say experts.

The RBI move is also likely to hit the business of companies such as Knight Frank which market properties abroad. "The business of companies marketing properties will be stopped now. They have to find some other avenues," said a senior director at a property consultancy.

NO HOUSE ABROAD

* RBI reduced the cap on individual remittances abroad from $200,000 (about Rs 1.2 crore) to $75,000 (Rs 45 lakh) and barred individuals from using funds under the scheme to buy immovable properties abroad

* In 2012-13, says RBI, $1.2 billion was sent under this scheme, of which six per cent or $78 million (Rs 480 crore), was used to buy houses

* Buying property was one of the top five reasons that Indians sent money abroad, ahead of sums spent on meeting travel expenses or medical treatment.

Source:- Business Standard

Bandra Worli Sea Link

Omkar launches Luxury Project in Mumbai

10:10 AM

Omkar launches Luxury Project in Mumbai

All of the 400-plus “sky bungalows” as these apartments have been labelled, are sea facing and range from 2,500 sq ft to 18,200 sq ft

Mumbai-based Omkar Realtors and Developers have recently launched a luxury project called Omkar 1973, at Worli in central Mumbai. The project, spread over 4.5 acres, comprises three towers with a height of over 800 meters. This is the company's flagship development and is named from the latitude and longitudinal coordinates of Mumbai.

The location is well connected from Annie Besant Road and Bandra Worli Sea Link with close proximity to Bandra Kurla Complex on one side and Nariman Point on the other.

“Our vision is to provide privacy, personalisation and perfect space. The pre-launch reception to the project from industry experts and target patrons has been exceptional, with the current inventory of one of the towers already being sold out,” said the company’s managing director, Babulal Varma.

All of the 400-plus “sky bungalows” as these apartments have been labelled, are sea facing and range from 2,500 sq ft to 18,200 sq ft. Prices start from Rs 15 crore and go up to Rs 100 crore. The first habitable unit will be built at a height of 70 metres. Towers A, B and C will go up to 76 storeys, 75 storeys and 60 storeys, respectively.

The complex has been designed by world renowned architecture designers Fosters + Partners along with UK-based HBA who will do the interiors. Another UK-based company, Buro Happold, will take care of structural design while construction will be done by Larsen & Toubro.

The LEED-certified project will further offer unique amenities such as a sky spa, an aqua gym, sky lounge and bar, elevated jogging tracks, car wash facilities, dog park and crèche. There will also be a squash court, a covered badminton and tennis court, banquet halls and two infinity pools among others. The amenities will be spread over a 2.5 lakh sq ft, said Varma.

The development has attracted an initial private equity funding of Rs 200 crore from PE fund Indiareit (Ajay Piramal Group) and a Rs 1200-crore debt funding from Yes Bank, said the statement.

by Jharna Mazumdar for Financial Chronicle

Economy

Mumbai Real Estate Market sees 16% jump in Registrations

10:05 AM

Mumbai Real Estate Market sees 16% jump in Registrations

Despite a slowdown in the economy, the Mumbai real estate market saw a 16% increase in property registrations in the first half of calendar year 2013 over the same period last year, data sourced from Director General of Registrations, Mumbai, showed.

There were 34,588 registrations between January and June 2013 against 29,773 done last year, signalling an uptick in property sales. Supply coming back into the market, quicker approvals for projects and developers offering discounts and freebies on bookings seem to be factors having a positive effect on the property absorption's in the metropolis, albeit at a very slow pace.

Sales in the Mumbai market have been sluggish for the last 12-18 months as a change in the development control rules, coupled with increasing liquidity pressures being faced by developers had hit the market.

However, the approvals scenario has been improving. Brihanmumbai Municipal Corporation's (BMC) highrise committee cleared 62 building proposals between January and June 2013. This was more than five times the number of proposals it had cleared between June 2012 to December 2012. The committee scrutinises building proposals based on various aspects including environmental sustainability, infrastructure and availability of the mandatory open space.

Among the premium projects that have been cleared between January to June are projects of Lodha Developers, Runwal Developers, Omkar, Nirmal Lifestyle, Orbit Corporation and Rajesh Lifespaces.

However, Reserve Bank of India's (RBI) hawkish stance on interest rates has been a dampener, say developers. "It is a fact that lot of pent up demand for real estate is getting materialised into sales, but much more push is needed from the RBI and government in terms of reducing interest rates and improving economic scenario for a real surge in the real estate sector," says Vimal Shah, president, MCHI-CREDAI (Maharashtra Chamber of Housing Industry-Confederation of Real Estate Developer's Associations of India). While most expected rates to ease further in 2013, the fall in the currency has forced the RBI to reverse it's stance leading to fears that rates may actually start to see an uptick in the year ahead.

In trying to push sales in a tough environment, realty players have started wooing property buyers with schemes like 20:80, which allow customers to pay 20% of the value at the time of booking and the rest on offer of possession. “Rise in registration numbers is an indicator that approvals are coming fast aiding in more project launches and developers are also encouraging buyers to register properties faster,” says Ramesh Nair, MD (west), Jones Lang LaSalle India.

by Shubhra Tandon for The Financial Express

Investment

Concrete Returns on Investments

10:15 AM

Borivali

Right time to invest in Goregaon West-Borivali West growth corridor

10:00 AM

Right time to invest in Goregaon West-Borivali West growth corridor

For people looking out for beautifully-styled living spaces with stunning landscapes, the glitziest malls and commercial outlets – all within a walking distance, Goregaon West is the answer. Off the Western Express Highway, Goregaon West has emerged as an upscale commercial and residential destination in the central corridor of Mumbai. According to Rajan Joshi from Ganesha Associates, “Flats in the 2,000-3,000 sq ft category are available in the range of Rs 10,000-13,000 per sq ft. Same size apartments in the prime South Mumbai regions are priced much higher at Rs 30,000-50,000 per sq ft. Today, South Mumbai is selling on large floor plates and thus driving the property rates around Rs 9-10 crore. Such high prices have made the buyer reluctant to go to South Mumbai.

Goregaon West has its plus point. The locality is in close proximity to Jogeshwari-Vikhroli Link Road and is at a distance of 2-km from the Goregaon Railway Station, 1-km from the proposed Oshiwara Railway Station and 5-km from the Malad Railway Station. Earlier, Goregaon was considered a far-off and sparsely populated residential suburb with Aarey Milk Colony as its only popular landmark. Later on, catchments like Unnat Nagar, Jawahar Nagar, Motilal Nagar, Bangur Nagar and many other sprang up in the west of the city, making Goregaon a noticeable suburb. It further expanded after the housing boom three decades ago.

Today, Goregaon has almost hit a tipping point as many reputed builders including Poddar Matushree Group, Ekta Group, Kalpataru, Mavji Estate Developers have their development here. According to the MagicBricks.com data, some new projects are in the offing in this area with 2, 3 4 and 5BHK apartments. These projects are priced between Rs 1.20-7.50 crore and are expected to be ready for possession by 2015-16. These projects offer modern amenities like club house, gymnasium and swimming pool, children’s play area and spa.

Borivali West, located about 9.5 km from Goregaon West, has become a prime location for residential property seekers as well as retail outlets and commercial establishments. Manoj Shinde from Mumbai Builders, a brokerage firm, says, “The property prices here are between Rs 8,000-14,000 per sq ft depending on the location and quality of the property. Due to the demand, prices have already gone up by 25-35 per cent over the 2011-12 levels.”

This area is witnessing demand for housing mostly from buyers who belong to middle income groups. Factors motivating demand in this location are affordability, serene atmosphere and excellent connectivity, especially to main Mumbai and Thane.

Source: MagicBricks.com Bureau

Ajmera Group

Wadala on Growth Curve

1:04 PM

Wadala on Growth Curve

Wadala in Mumbai is a true example of multiple factors driving an areas’ real estate market. The impact of its development into a major commercial district by Mumbai Metropolitan Region Development Authority (MMRDA) and the up-coming infrastructural projects is clearly visible. Demand for housing units and the property values in Wadala have almost doubled in the last three years.

According to Knight Frank’s ‘Investment Advisory Report’ of 2012, a total of 13 destinations were identified across various cities of which locations like Ulwe, Wadala and Chembur held the top three positions. The report suggested the property values in Wadala to go up by 133 per cent in the next five years.

Reiterating, Sanjay Yadav of Sunrise 2 Realty says, “The properties which were earlier available within Rs 10,000-11,000 per sq ft are now available for Rs 20,000-22,000 per sq ft. Initially, Wadala gained its market of homebuyers because of its proximity to Bandra Kurla Complex (BKC). Now, MMRDA is developing Wadala on the lines of BKC. After Lodha Group acquired land worth Rs 4,000 crore from MMRDA three years back, the property values went up drastically. In addition to the commercial development, the infrastructure projects such as the Monorail, Metro and the Sea Link have impacted the property values in the area.”

Increasing housing demand in the locality is also visible from the fact that the rental values have reportedly been going up. According to PropIndex (Vol 2, Issue 4), the research publication of MagicBricks.com, rental values in Wadala rose by six per cent in the Jan-Mar 2013 quarter.

“Proximity to BKC and the development of the locality into a major commercial area has led to a major shift in homebuyers. The demand is a spill-over from the expensive central locations to a much affordable developing location. Also, improved connectivity through the Anik Panjarpol Link Road, Kurla-Santacruz Flyover, Byculla Bridge and the Masjid Bridge is an added advantage for the residents. Once the monorail becomes functional, these areas would benefit and develop the most,” says Amit Khosla of Khosla Enterprises.

Looking at prospects of the locality, there are several residential projects coming up by developers such as the Lodha Group and Ajmera Group, among others. Most of the projects are under-construction and would be delivered in another two to three years.

by Shradha Goyal, MagicBricks.com Bureau

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Mumbai sees Highest Price Appreciation

Lodha launches Luxury Housing Project at Worli

Lodha launches New Project 'The Park' in Worli

Abhisheck Lodha - We did highest net sales in real estate segment last year

Curb on Overseas Property Buy may Boost Indian Realty Market

Curb on overseas property buy may boost Indian realty market

Back RBI chokes Foreign Home Buys

Omkar launches Luxury Project in Mumbai

Mumbai Real Estate Market sees 16% jump in Registrations

Concrete Returns on Investments

Right time to invest in Goregaon West-Borivali West growth corridor

Right time to invest in Goregaon West-Borivali West growth corridor

Wadala on Growth Curve

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