Get me outta here!

Wednesday, February 8, 2017

Affordable 2BHK in Noida Extension for Just Rs 18.95 Lakh

Are you looking for an apartment in Noida Extension in the affordable price range? Want to buy your dream home?

Sikka Group has launched 2BHK apartments  in Sector 10, Noida Extension. Part of a 5.5 acre project, the flats have been designed to have a compact layout with reduced wastage area and better tower layout to make flats cheaper and affordable.



These flats are being developed in one tower in Sikka Kirat Greens. The affordable 2BHK is being launched as Sikka Kanak Greens, Noida Extension.

The compact layout of the apartment allows home buyers to get the benefit of Pradhan Mantri Awas Yojana. You can get a subsidy up to Rs 2.2 lakh on your home loan and reduce your property cost significantly. For the benefit of the housing subsidy scheme, your household income should be not more than Rs 50,000 per month and your family should not own any pucca house.

For almost three decades Sikka Group has completed a series of real estate project in and around the NCR region of India. Today the total built up area of their ongoing projects exceeds 6 million sq.ft. with plans to build around 3 million sq. ft. area in the current financial year, about 15 million sq. ft. in the coming 3 years, dwelling nearly a 100000 families. Along with the prominent presence in the real estate, Sikka is a distinguished business entity in the industry of automobiles, posting an impressive turnover of INR 5 billion.

Friday, October 7, 2016

Godrej Golf Links Greater Noida: Godrej Properties New Project in Greater Noida

After maintaining the suspense for a while, Godrej Properties has announced the name of its new launch project in Greater Noida: Godrej Golf Links Greater Noida.

Godrej Golf Links, Greater Noida



The new project, which is to be developed on a 100-Acre land parcel in joint venture with AR Landcraft, has been named as Godrej Golf Links as the project is designed as a golf-centric property in a recreational zone plot.

The land has been allocated and earmarked by the Greater Noida authority for recreational green area. This means the land will have at least 70% open area dedicated towards recreational greens such as golf course. On the remaining 30%, Godrej Properties will develop residential villas and apartments tastefully designed for a luxurious lifestyle of its residents.


Godrej Golf Links Greater Noida: Godrej Properties New Project in Greater Noida
For details, please call 09958927543

Tuesday, October 4, 2016

Godrej Atlas, Greater Noida: Luxury Villas by Godrej Properties in Greater Noida

Godrej Atlas, Greater Noida is the latest residential project by India's most trusted brand Godrej Group's real estate arm Godrej Properties.


Godrej Properties new launch in Greater Noida will be named Godrej Atlas.


Villas Configurations
Category (Sq. Yds.)
Per Unit Saleable AreaTicket Size ( Tentative)
100
2300-24001.25-1.35 Cr
125
2750-2850
1.50-1.60 Cr
2204650-4750
2.55-2.65 Cr
3006000-6200
3.45-3.55 Cr


Key Features of Godrej Atlas, Greater Noida

  • 100 acres Township Atlas in Greater Noida
  • 9 Hole Golf Course
  • 80% Green Panoramic Golf View
  • Metro connectivity under construction
  • Connected to Gr. Noida Expressway & Yamuna Expressway
  • Best transportation in Delhi NCR
  • Buddh International Circuit
  • Prime location in Greater Noida

Location Advantages of Godrej Atlas

  • Pari Chowk, Greater Noida – 1 Minute
  • Noida Expressway – 5 min.
  • Yamuna Expressway – 5 min.
  • Kalindi Kunj – 20 min.
  • Akshardham Temple: 25 min.
  • Sector 18 Noida: 20 min.

Godrej Atlas Villas is designed by renowned architects of the world, with a spectacular clubhouse that exudes opulence for the residential community. Godrej Atlas Villas Sector 27 Greater Noida bring to you unique living experience where independent living spaces are blended with community living. Every villa comes with private balcony and garden.

Thursday, July 21, 2016

Creating Wealth With Residential Real Estate Investment


By Anuj Puri, Chairman & Country Head, JLL India

Effective investment in residential property requires the chosen location to meet certain parameters. Fundamentally, the area should have good social infrastructure, availability of adequate public transport and sufficient economic activity to sustain development and growth. These parameters apply equally to investment in NA-certified land approved for residential development and flats in a residential project.

In order to mitigate most of the investment risk, one should restrict one’s residential property investment to Tier 1 and select Tier 2 cities. It is also most prudent to invest in properties where the price tag falls between Rs. 2500-5000/sq.ft., since such a price tag provides downside protection against any capital value erosion. Simply put, the cost of construction and minimum cost of land literally makes this price segment safe, and almost guarantees capital appreciation.

Further Guidelines:

·         The property cycle needs to be understood so as to identify the best entry point
·         Leasehold titles issued by the Government must be fathomed
·         The investor needs to have a clear comprehension of unearned increase or capital gain and the consequently higher stamp duty implication at the time of conveyance from the developer
·         The quality of the development is important, because depressed markets often result in poor design and construction quality
·         Availability of the project’s development plans and all statutory approvals is de rigueur. If approvals are not yet in place, the investor should monitor them closely during the investment cycle
·         The developer’s arrangement for all the finances for completion of the project must be verified
·         The title’s due diligence by a qualified and reputed legal firm is now a given. One can no longer rely solely on the due diligence of home loan firms, as they have targets just like developers
·         The size and dimensions of the plot and the apartment need to be understood; small plots or apartments may cost less, but they are also often difficult to resell
·         The location of the development may be important, but so is the location of the plot or apartment within the complex. Investors should avoid buying flats on the top floors of high-rise buildings, as these artificially add to the cost due to floor-rise concepts
·         The credibility and track record of the developer need to be researched, since even the best ones have failed to deliver under the current market conditions
·         The price band of the development should be lower than the last highest peak in 2008 (exceptions can and should be made for quality, delivery date and location)
·         The time of conveyance of land and delivery (possession) must be explicitly clear
·         The penalties in case of delay must be well understood; not everyone can fight legal battles.
·         The investor must clearly understand the delta between soft launch, launch and current price of the developer (the resale of existing ready projects may be actually cheaper)
·         The investor must understand the sale agreement along with the transfer charges in case he wishes to sell the apartment during construction or prior to registration. He should establish whether the agreement captures within the official cost all the amenities, parking, etc. that the developer promised at the time of sale, or whether these are mentioned separately
·         The investor should employ usable carpet area vis-à-vis chargeable area as the price benchmark vis-à-vis other projects

Finally, the investor should keep an eye on the market and sell the residential property at the right time in order to multiply wealth. If all the above precautions have been taken, the property should have appreciated at a consistent rate of 15% per annum for three years. It is important to remember that one can almost never sell at the peak, just as it is impossible to always catch the lowest price.

Best Cities For Residential Property Investment

Some of the markets that currently show the highest residential property investment potential:

·         North India: NCR, Lucknow, Chandigarh and Jaipur, Dehradun
·         East India:  Bhubaneswar, Kolkata and Guwahati, Ranchi
·         West India:  Ahmedabad, Mumbai, Pune and Nasik, Nagpur
·         South India: Hyderabad, Bangalore and Chennai, Coimbatore, Vijaywada


Within these cities lie the opportunities for a higher delta of capital value appreciation, depending on the demand and supply dynamics of their micro markets and also the quality of the development, reputation of the developer, strategic value of the location and timely completion of projects.

Thursday, July 14, 2016

10 Emerging Affordable Property Destinations In Bangalore

By  Anuj Puri, Chairman & Country Head, JLL India:

Even as sales velocity for mid-income and luxury housing in Bangalore fluctuates with macro-economic variations, the city’s affordable housing segment has been witnessing steady demand on the outskirts. Availability of large land parcels at lower price points and the rapid expansion of the city in all directions have encouraged real estate developments even in the outlying areas. Infrastructure developments such as the planned Metro Rail and Peripheral Ring Road also play a part in making these affordable emerging areas attractive and viable.

During the first half of 2016, two significant market dynamics have been observed in Bangalore’s real estate market – an increase in new commercial launches, and a rise in the net absorption of commercial spaces. While the absorption levels are currently somewhat sluggish in the residential sector, commercial real estate is witnessing increased momentum with developers completing some of their office projects ahead of the original timelines.

The influx of more global corporate occupiers, infrastructure deployment in the peripheral areas, rapidly improving connectivity and unleashing of large land parcels by the Government for commercial and industrial growth have all colluded in the rapid emergence of newer nodes in the peripheral districts of Bangalore. Land in these areas comes at a lower cost; this has attracted developers of affordable housing projects, which are in demand from the workforce employed in the numerous automotive, engineering and other industries located on the outskirts of Bangalore.

  • Locations beyond Electronics City such as Jigani, Attibele, Anekal and other localities towards the south of NICE Road are now gaining traction due to the relatively affordable property prices and a perennial demand rising from the Jigani Industrial belt and Bommasandra Industrial Area
  • Mysore Road in the south-west part of the city is a major manufacturing hub that provides significant impetus to demand for affordable projects in the nearby satellite town of Kengeri
  • Proximity to the Bengaluru-Chennai Industrial Corridor and interest from various Japanese multinationals has made Old Madras Road a preferred location for affordable property options.


Let us examine some of the other prominent areas that offer good options for affordable housing seekers and simultaneously offer good returns on investment over mid-to-long term.

1.     Kanakapura Road


Located towards the South of Bengaluru, Kanakapura Road benefits from excellent connectivity with the key city centres. Various infrastructure and transport facilities make Kanakapura Road a preferable suburb. The NICE Road (Bangalore-Mysore infrastructure corridor) connects Kanakapura to Bangalore, Mysore Road and Bannerghatta Road. The ongoing Peripheral Ring Road (PRR) that will connect all the major highways - Tumkur Road, Mysore Road, Old Madras Road and Hosur Road - is an added advantage for the region. Extension of the Metro line and widening of roads have also improved the real estate profile of this market, which is close to prominent educational institutions such as International Institute of Aerospace Engineering and Management (IIAEM), CREST (Centre for Research, Education, Sadhana and Training), hospitals, and leisure and entertainment hubs. Considering the development expected to happen here over the next few years, and the current property prices which are below Rs.4900/sq.ft., Kanakapura Road is certainly an area for both end users and investors to watch.

2.     Sarjapur Road


The diverse range of property prices here has made Sarjapur an attractive micro-market for all classes of buyers. This area has witnessed stable demand from middle-class buyers looking for 1 and 2-BHK flats, as well as from high-end buyers focused on villas and row houses. Its proximity to the large IT/ITeS campuses of Outer Ring Road (ORR), Whitefield and Electronics City has strengthened investor sentiment in this location. With property prices catering to a vast cross-section of home-buyers and the presence of good social and general infrastructure, with numerous schools and healthcare facilities in the vicinity, make the Sarjapur Road an interesting investment proposition. The property prices at Sarjapur Road range between Rs.4700-4850/sq.ft., with a quarterly appreciation to the tune of 4.7%.

3.     Nallurhalli


An upcoming location in Whitefield, Nallurhalli benefits from generous green cover as well as the presence of a lake. It is home to Sigma Tech Park, Forum Value Mall and ITPL and also enjoys good accessibility from Old Airport Road and Old Madras Road. This location is seeing a lot of villa and bungalow-type developments. With property prices saturating in Whitefield, Nallurhalli – which is situated close to major IT projects - offers relatively affordable residential property options for home buyers seeking to live close to Whitefield. Property prices here range between Rs. 4500-4700/sq.ft. with a quarterly appreciation to the tune of 2%.

4.     Kengeri


Kengeri is an established satellite township where property demand is driven by the industrial developments along Mysore Road. This location also caters to the affordable housing requirements of the IT developments that located on Mysore Road. Kengeri benefits from excellent connectivity with Mysore Road, NICE Road and the Outer Ring Road, and the western extension of Namma Metro from the Mysore Road terminal to Kengeri. With excellent connectivity, adequate social infrastructure and the presence of commercial and retail spaces, this area is transforming into a vibrant residential destination. Kengeri is currently a mid-to-affordable residential market with property prices averaging at Rs. 3815/sqft and witnessing a quarterly appreciation to the tune of 3.7% on the back of planned Metro connectivity that will drive increased residential demand in the future.

5.     Budigere


Budigere on Old Madras Road is an emerging residential destination where IT/ITeS influence from the neighbouring areas and rapid infrastructure development have resulted in considerable growth in a short time. Budigere also receives strong demand for residential units from the manufacturing industries present in the region. With the prices saturating in already developed neighbouring areas such as Whitefield and Brookefield, Budigere receives significant spill-over demand due to its relatively affordable prices. It has good social and general infrastructure in place, and many reputed developers are active here with a wide range of housing projects. The property prices here range between Rs. 4500-4700/sqft. with the last quarter bringing a surge in property values by 2-3%, depending on the project and amenities offered.

6.     Magadi Road


One of the main factors that work for Magadi Road in the western part of Bangalore is that it is easily accessible from the centre of the city. As most of the development in Bangalore is focused towards the east and south of the city, the western corridor is still relatively green and serene. Also, good connectivity through Nice Road, Outer Ring Road and the Purple Line of Namma Metro give Magadi Road easy accessibility to other parts of the city. This has led to many leading ddevelopers launching mid to high end segment apartment project along Magadi Road. Currently, this micro-market has a mixed-bag of residential project offerings catering to a fairly wide spectrum of property buyers. As of now, these pprojects are priced in the range of Rs 8000-12000/sq. ft. for high-end units and Rs 3300-5000/sq. ft. for mid-end projects, so there is still good potential for homebuyers looking at relatively lower ticket sizes.

7.     Hosur Road


Hosur Road in South Bangalore covers locations such as Begur, Kudlu Gate, Singasandra and Electronic City. Locations along Hosur Road close to Electronic City and Begur Road cater to affordable to mid segment housing, with prices which are currently less than Rs. 4500/sq.ft. Many reputed developers are already active in this sub-market – a fact which has worked well from an overall profiling perspective. Prices in both these locations have appreciated by about 5-10% in the last one year.

8.     Yelahanka & Doddaballapur Road


Yelahanka was traditionally a suburban satellite town of Bangalore, where development was largely driven by the manufacturing sector until the Kempegowda International Airport became operational. The development of the airport opened the floodgates for office and mixed-use developments along Highway NH-7 connecting Yelahanka and the airport. The availability of generous large land parcels for large projects and good rail and road connectivity with the core city have also been driving investment sentiment at Yelahanka. Apartment projects are currently priced between Rs. 4000-5500/sq.ft. in this locality, which also has quite a few plotted developments as alternative options for buyers and investors. As this location is in its initial stages of development, it has witnessed marginal appreciation in property prices over last one year. However, as the SEZ and mixed use developments along the NH-7 start operations in next one year, this location is likely to see a lot more demand and development action – with consummate appreciation.

9.     Horamavu


Horamavu in the north-east part of Bangalore is easily accessible from the airport through the Outer Ring Road. It is located close to key residential locations such as KR Puram and Banaswadi, and is developing into a fully-loaded residential destination. Real estate development in Whitefield and along the Outer Ring Road has boosted faster development in this location, which currently caters to the residential requirements of employees from the office projects in the northern part of Whitefield. Some of Bangalore’s leading local developers and a couple of national players are now active with projects in Horamavu. It is still primarily a mid-segment residential destination, with capital values ranging between Rs. 3000-4800/sq.ft. With the increasing focus of infrastructure development in the north of Bangalore, Horamavu will see a lot of fresh residential demand in the near future.

10.  Mysore Road


The Mysore Road sub-market had a slow start in terms of real estate activity, as there were no strong economic drivers for the area. Also, a major portion of this sub-market is still dense with old developments built on small parcels of land. The development Global Tech Village an IT SEZ by Tanglin Developers along Mysore Road led to the launch of many residential apartments in this location, which is now seeing added traction on account of its proximity to various educational institutions and industrial developments, and good connectivity from ORR and NICE Road.

The residential sector on Mysore Road is mostly dominated by low and mid-end apartment projects, with the high-end residential market still at a very nascent stage. Mysore Road currently has around 5,500 units of marketable residential stock from different developments, and capital values range from Rs. 3,000–4,000/sq.ft. The typical buyers for homes in this area are employed in the government services, small-scale industries and to some extent in the IT/ITeS sector.

The above list is by no means exhaustive - as the city expands, more such affordable corridors will be developed. Though Bangalore is on all counts a prosperous city with a lot of demand for high-end housing, no property market in the country can hold its own solely on the back of HNI housing. Among many other things, Bangalore is a leading destination for back-office and other support areas of the IT/ITeS and other services sectors. Affordable housing will therefore remain the backbone that supports the real estate market of this thriving city.


Sunday, June 26, 2016

6 Reasons Why Kochi Will Be India’s Next Real Estate Hotspot

by A. Shankar, National Director & Head of Operations – Strategic Consulting, JLL India

City Expects Investments Of INR 2,076 Crore; Sustainable Real Estate Growth Assured

Kochi hits a six to become the next highly preferred real estate destination in India. All potential drivers such as IT development for employment generation, Metro rail for intra-city connectivity, the Smart City tag for basic infrastructure, port-based development for industry and commercial growth, airport terminal for international connectivity and foreign investment and tourism for the hospitality industry are emphasized in Kochi.



This will ultimately boosts demand for housing and make it one of the next highly-preferred real estate destinations in India. The 6 reasons why this will happen shortly:

1)             Inclusion in the top 20 Smart Cities:

Recently, the Ministry of Urban Development, Government of India identified the top 20 candidates under the Smart City mission initiative through a competitive selection process. Kochi ranks 5th and expects an investment of INR 2,076 crore for pan city solutions and area-based development. E-Governance and water management are focus areas as part of pan city solutions which will help Kochi to access improved and planned infrastructure with assured water and power supply, sanitation and solid waste management, efficient urban mobility and public transport, IT connectivity, etc.

Kochi-Mattancherry-Central City, which is selected as the area for development, will witness intense development in the coming years. Numerous developers are trying to acquire land for real estate development in and around this area. The ‘Smart City’ tag is expected to boost prices exponentially.

2)             The first Indian Tier-II city to a propose Metro Rail:

Metro rail connectivity in Kochi is under various stages of construction and is expected to be operational by 2017. In Phase I, the Kochi Metro Rail Corporation has proposed an elevated route spanning approximately 25.25 km from Aluva to Pettah. Once completed, the metro will improve connectivity and reduce travel time from Aluva to the key micro-markets of Kochi. Real estate will be greatly influenced once the metro becomes operational. Areas like Companypady, Ambattukavu, Kalamassery, Edapally, Palarivatom, Ernakulam South, Elamkulam, Vytilla, Panampilly Nagar and Kadavanthara will be the main beneficiaries and some of them have already started to witness increased development.

The future expansion of the metro will also benefit areas like Menaka, Kakkanad and West Kochi. Metro rail stations exert influence up to a buffer of 1 km radius, with maximum influence in the areas within a 500 m radius. Land prices along metro rail corridors have increased by 10%-15% after announcement, and are expected to increase further after operations.

3)             New international airport terminal to cater growing demand:

Cochin International Airport Ltd (CIAL) is constructing a INR 1,100 crore international terminal with a built-up space of 15,00,000 sq ft. It is designed to handle 4,000 passengers per hour and will be commissioned by 2016. Once operational, the new international terminal will have a very positive economic impact and uplift the real estate market in the whole region. The catchment will witness development of new retail and commercial spaces along with a good supply of residential and hospitality developments to cater to the increasing demand.

The increased international connectivity will also pave the way for global companies and cargo-based businesses to deploy and expand operations nearby. The completion of the international terminal, along an operational metro, will give significantly boost the city’s real estate market – and the catchment itself is expected to witness 15-20% rise in property prices.

4)             Venue for one of two submarine cable landings in India:

Kochi is one of the venues for 'SEA-ME-WE-3’ (South-East Asia - Middle East - Western Europe 3) and 'SAFE' submarine cable landings, and is the second Indian location along with Mumbai to have two submarine cable landings. This fact highlights Kochi as an important destination for IT enabled services. Presently, the Government of Kochi is keen on developing IT/ITeS, as the entire Kerala state is promoting this sector heavily.

The major thrust on IT/ITeS development will eventually boost real estate development in the city, as it creates demand for residential properties, Grade A office spaces and retail developments.

5)             Home to India’s first global hub terminal:

Kochi is among India’s leading cities for strong port infrastructure and has the largest (and India’s first) global hub terminal - the International Container Transshipment Terminal (ICTT) at Vallarpadam. This makes Kochi the premier port gateway to South India. Warehouses and other port-based industrial developments will see growth in these areas and lead to vastly increased port-related activities.

6)             Continued tourism growth:

Kochi is known for its high heritage value, and contributes significantly to Kerala’s tourism industry. It sees an annual tourism influx that equals about four times its population, of which 14% accounts for foreign tourists, and reflects an annual increase of about 6%. The city’s vision of transforming itself into a tourist hub paves the way for steadily increasing demand for the hospitality sector and its allied industries.

In short, Kochi - which was earlier struggling to recover from an oversupply scenario – will see a massive revival due to creation of demand from these initiatives. Sustainable growth in real estate prices is now assured in the city, and this has incited new interests from numerous real estate developers from all over India who are keen to launch residential, commercial and hospitality projects there.



Sunday, June 19, 2016

Sky Villas: Taking Luxury Living to New Heights

By Ashwinder Raj Singh, CEO – Residential Services, JLL India

The luxury segment in the Indian real estate sector is an ever-evolving one. Everything that money can buy is now being made available to buyers who want to live life king size. Sky villas are one of the latest developments on this front. The concept is not new, but borrowed from the more evolved western real estate markets. It has been around in the country for a few years now, and it has gained wide-spread acceptance in recent times.



What Is A Sky Villa?

Villas and penthouses have for long been marketed to HNI home buyers, but sky villas combine the benefits of both penthouses and villas - along with some additional unique features. Unlike a villa, which is basically a standalone bungalow or a penthouse which is just an apartment on the top-most floor of a high-rise, a sky villa is a humungous multi-level apartment which often covers 2-3 floors. It combines the luxuries of a sprawling bungalow with the advantages of secure living and integrated facilities in an apartment complex.

Though the focus in sky villas is on exclusivity and the individuality of the buyer, the services and amenities are shared by every member of the tower comprising sky villas - unlike a penthouse, where the luxury is limited to the residents of the penthouse.

Sky Villas - Exclusive Luxury At A Price

The amenities being offered by various developers who create sky villas involve private gardens, private plunge pools, sundecks, private elevators, home theatre lounges, mini gyms, master suites with walk-in closets, advanced electronic surveillance, concierge on call, etc.

The target clientele for sky villas is High Net-worth Individuals (HNIs). Since it is a relatively new and growing sector, there are no benchmark prices. Suffice it to say that sky villas cost upwards of Rs. 5 crore; in major metros like Mumbai and Delhi-NCR, they can command prices starting from Rs. 40 crore.

The Place Of Sky Villas In India’s Luxury Homes Market

The luxury home segment in most developed markets accounts for 7-8% of the total real estate, while in India its contribution is currently a mere 2%. However, it has been growing in double digits over the past couple of years, thanks to the rise in High Net-worth Individuals. Indian HNIs are slated to cross a headcount of 3.5 lakh by 2018-19 owing to growth in economy and an astonishing rise in income levels.

With more and more Indians getting global exposure to avant-garde lifestyles, the demand for options which replicate such living experiences in India is mounting. In the more evolved and mature western markets, the concept of sky villas is already quite popular - in Las Vegas, USA, there are sky villas which compete to be part of the top 10 most expensive homes in the world. With the same kind of luxury coming to Indian consumers, this niche luxury segment is attracting increasing investments from builders who have charted the course for its future demand.

It is by no means an easy category to develop, as it demands the right locations and right neighbours apart from world-class luxuries. Inevitably, they also need to tie up with international designer brands to add the final layer of exclusivity to their sky villa projects. However, builders who create such dwellings don’t have to work too hard to find buyers among the country's ultra-rich.

Tuesday, June 14, 2016

India Sought-After Investment Destination For Chinese, Japanese Developers

by Anuj Puri, Chairman & Country Head, JLL India

· China’s biggest developer Wanda signed an MoU with Haryana earlier this year; more developers from China and Japan are expected to follow suit

·  Large residential and industrial projects of particular interest

Given the current prime minister’s focus on improving India’s stature amongst the global investment community, there has been a big change in India’s image as a business and economic hub. After 100% foreign direct investment (FDI) was allowed into the real estate industry, it was only a matter of time before foreign developers made big investment announcements.

One of China’s most prominent developers, Dalian Wanda Group, signed a memorandum of understanding (MoU) earlier this year with the northern state of Haryana to develop ‘Wanda Industrial New City’. The investment of USD 10 billion, phased out over the next decade, is a very significant outlay by any Chinese company in India.

Other Chinese developers are also interested in India and most likely to follow suit. A MoU signed between China Fortune Land Development Company Private Limited (CFLD) and Haryana state will see large format industrial parks come up in the state. Gezhouba, another prominent Chinese construction company, has in-principle agreed to invest INR 10,000 crore in irrigation projects in Telangana state.

It will be interesting to see if larger deals are signed in 2016. With China experiencing a slowdown in their own economy, the developers there will get an opportunity to benefit from India’s growth story. The Wanda investment will be one of its biggest, so far. It is also bigger than most deals that other Chinese companies investing abroad carried out in 2015.

Even for the Indian real estate industry, it will be among the biggest investments in the residential and retail asset classes by a foreign developer. Increased participation by foreign players is expected to help in the development of quality projects, which will benefit end-users and simultaneously create opportunities for Indian investors too.

It will be interesting to observe the implications of Wanda’s strategy and the innovations such foreign players bring to India as they compete with local and well-established players to capitalise on the opportunities that India gives them now.

Foreign developers are also going to look at partnering with their Indian counterparts. Interestingly, large residential projects are of particular interest to other Chinese developers. It remains to be seen if commercial asset class also gets on their radar in the near future.

The Wanda Deal

Wanda plans to invest USD 10 billion in the next 10 years to construct industrial townships, retail and residential developments. According to media reports, construction of the phase-I of ‘Wanda Industrial New City’ is likely to begin in 2016 and it will be spread over 1,300 hectares. It will comprise an industrial park that will house companies from various sectors, such as software, automotive manufacturing, machinery, health care, education and other industries. The first phase is anticipated to be completed in the next 3-5 years.

The Japanese could be next

Japanese and Chinese private equity investors are also looking at entering India’s real estate sector. Japanese developers are keen to explore strategic partnerships and enter into joint ventures with Indian builders, and are particularly interested in industrial projects. There is likely to be an inflow of at least USD 2 billion in investments from Japan into the Indian real estate market over the next three years.

Interestingly, the RICS-JLL survey this January had shown that 62% of the respondents - all seasoned real estate investors - felt that institutions from Japan and China could come knocking to the Indian real estate market in 2016.


Monday, June 13, 2016

Bengaluru Developers Complete Commercial Projects Ahead Of Schedule

by Ashutosh Limaye – National Director, Research, JLL India

Strong absorption trends in city a major catalyst; more projects expected to follow suit

From a few quarters ago, corporate occupiers in India have been staring at a severe supply crunch of ‘right product-right place’ grade-A commercial realty. In such a scenario, a ray of hope is being provided by a few developers in Bengaluru, who have completed some of their office projects a couple of quarters prior to the original deadlines.


This is most probably due to these developers taking note of the existing situation in the sector, especially on the back of strong pre-commitments and demand for office space. Three projects located along Lavelle Road and Sarjapur Road are partly operational and ready for fit-outs from 4Q15 beating their original completion schedule by 2-3 quarters. In the next few quarters, more under-construction projects are expected to follow suit as more developers could start aiming for faster completion of their commercial projects given the strong absorption trends in Bengaluru.


Showing faith in India’s economic growth, corporate occupiers have been in expansionary mode, especially in major cities. So high is the demand for quality commercial spaces in the city that 2015 proved to be a historic year as demand overtook supply. Vacancy has been steadily going down. Riding on the back of reducing supply and lowering vacancy, rents have also been rising in grade-A properties across cities. Even Grade-B buildings in good locations would see more leasing activity in this scenario.


In Bengaluru, vacancy is a mere 4-5% across its office space of more than 90 million sft. In 2015, more than 10 mn sft of office space got occupied and another 2 mn sft of leasing was done in under-construction projects. Although there is demand for 10 mn sft, supply of only 8-8.5 mn sft non-captive office space is expected to come up in 2016. Developers in Bangalore are known to be nimble footed and we may see more “ahead of time” completions of office projects in near future to meet strong demand the city demonstrates.


The projects at a glance:


·         RGA Tech Park
·         909 Lavelle
·         Global Village Technology Park Phase 3 Tower 6
·         Global Technology Park Tower A & Tower B.

Sunday, June 12, 2016

Gujarat Real Estate 2016: At A Glance (Present & Future of Real Estate Market in Gujarat)

by Nirav Kothary, Head – Gujarat Operations & National Director – Industrial Services, JLL India 

Gujarat is one of the most industrialised states in India, with a well-earned reputation of being very investor-friendly. The state has a proven track record for attracting high volumes of investment, becoming the most favoured investment destination in India on the back of its sound economic policies and pro-active governance. The Vibrant Gujarat Summit has acted as an effective catalyst for Gujarat’s journey of industry growth, and the 6th edition of Vibrant Gujarat in 2015 saw as many as 21,304 Investment Intentions signed. 

The Gujarat Government is developing the only IFC (International Finance Centre) in Gujarat – GIFT City (Gujarat International Finance Tec-City) is an under-construction central business district to be built on 886 acres of land. Additionally, Dholera SIR, the Gujarat affordable housing mission, the Kalpsar Project, PCPIR, DMIC, DFC, High-Speed Rail Corridor and various other mass transit projects across the cities are initiatives to boost the growth of Gujarat’s urban and industrial sectors.


Gujarat is home to various cities such as Ahmedabad, Vadodara, Surat, Rajkot, Jamnagar, Vapi, etc. which are nodes of urban development in the state, are considered independent growth centres with their own identities, and attract population from across the country. 

Ahmedabad


Ahmedabad, the seventh-largest metropolis of India, is Gujarat’s pharmaceutical and textile hub. Many infrastructure projects like Sabarmati Riverfront, Bus Rapid Transit System and the Ahmedabad–Gandhinagar metro - underway or already operational - will eventually boost the realty sector of Ahmedabad.




Major residential projects are coming up in the western part of the city, in areas like Vastrapur, Satellite, Prahladnagar, Bopal, Vaishnodevi and Bodakdev. Other areas of the city have also witnessed significant residential supply over the last few years. The upcoming and most active areas are Bopal, Prahladnagar, Vaishnodevi, Raysen (Gandhinagar) and Ambli Road, which have quality residential supply of various unit configuration. The price range of the inventory is INR 3000 to INR 8000 per sq.ft. 

The major supply of good quality commercial real estate is in the central as well as western region. SG Highway, Ashram Road, CG Road, Sindhu Bhavan Road and Corporate Road have witnessed large commercial projects offering strata sale options. The capital rate for commercial estate ranges between INR 5,500-7,500 per sq. ft., while the rentals vary from INR 35 -55 per sq. ft. The major occupiers are financial institutions, corporate and service sector offices.

The more significant supply of high street as well as organised retail spaces is concentrated in the western part of the city. CG Road, Ashram Road, SG Highway and Prahladnagar are the dominant high street retail locations, while malls are located in the Vastrapur, SG Highway and Satellite areas. The capital rates for retail spaces ranges between INR 12,000-22,000 per sq. ft., while the rentals vary from INR 80 -150 per sq. ft

A large number of industries related to textiles, chemicals, machinery, metal products, pharmaceutical, engineering, plastics, electrical appliances, electronics, passenger cars, etc. are located in the district. Well-developed infrastructure, a prudent industrial policy of the State Government and a peaceful industrial atmosphere have been vital factors to contribute to the industrial growth in the district.

Sarkhej-Sanand Road, Bavla–Changoder, Kadi-Kalol, Vatwa, Narol and Chatral are industrial centres of Ahmedabad which have witnessed major growth post 2001 due to favourable industrial policies. Many large multi-national industries have established their plants in these locations.

Outlook

Apart from growing business sector and rapid industrialization, there are other growth drivers such as GIFT city, the Delhi-Mumbai Industrial Corridor (DMIC), the new affordable housing policy, newly-revised DCR with enhanced FSI, the Ahmedabad–Gandhinagar Metro and Transit-oriented Development (the successfully-running BRT and upcoming Metro Rail Project). These projects will significantly impact the real estate market of the city.

Vadodara


The third-largest city of Gujarat state has the advantage of strategic location in terms of connectivity with Ahmedabad and Mumbai, and being the geographical centre of the state. The prominent corridors are Old Padra Road, Gotri Road, Waghodia Road and Ajwa Road. Development on the north and south sides is restricted due to the presence of industrial areas.



The established residential areas in city - Alkapuri, Fatehgunj, Gotri, Gorwa, etc. - are mostly centrally located. Upcoming areas include Gotri-Sewasi, Old Padra Road and Ajwa Road. The capital rate for residential apartments in the established areas ranges between INR 2,100-2.900 per sq.ft., and higher for luxury developments. 

Vadodara’s commercial sector comprises of offices of financial institutions, academic institutes and branch offices of different enterprises. There are few existing commercial complexes and relevant supply is limited as of date. Most commercial developments are on RC Dutt Road, Old Padra Road, Gotri Road, etc.The capital rate for commercial spaces ranges between INR 2,500-5,000 per sq. ft. Occupiers are manufacturing companies having branch offices, financial institutions etc.

R C Dutt Road, Race Course Road, Gorwa and Old Padra Road have emerged as the prime retail areas of the city. A majority of national and international brands operational in the city are primarily located in these regions. The capital rate for retail spaces ranges between INR 8,000-12,000 per sq. ft. for high street retail.

Vadodara has been driven by industrial developments, especially in sectors like engineering machine tools, cotton textiles, glass, pharmaceuticals, chemicals, petrochemical and fertilizer industries. Major industries are located in north, south and eastern parts of the city. In areas like Manjalpur, Makarpura and Waghodia, Vadodara also has also been attaining growing importance in the knowledge and service based industries like IT/ITeS and biotechnology. 

Outlook

Various industrial initiatives and its strategic location on the Ahmedabad-Mumbai corridor are major growth drivers for the city. Apart from these, the provision of NISG (Nodes to Induce Specific Growth) in the development plan, BRTS and industrial development of eastern part (mainly on NH8) can be considered as future growth drivers of the city.

Surat 


Surat is distinctly divided into two parts by the River Tapi. The eastern part of city is large in area and has traditional settlements which comprise of the railway station, the old city and textile and diamond industries. The western side of river is emerging, and major real estate developments are happening in areas like Vesu Road, Pal Road and Dumas Road.

The established residential areas of the city are Adajan, Ghod Dod Road, Dumas Road, Varacha, Udhna Road, etc. The real estate market of the city has witnessed considerable activity in the past few years. Prime residential areas in the city are Athwa Lines, Ghod Dod Road, Dumas Road and Adajan. The emerging / developing residential areas in the city are Vesu, Puna-Kumbharia, Ved Gam and Bhathar.The capital rate for residential apartments ranges between INR 4,000-8,000 per sq. ft. 

Varacha Road, Parle Point and Athwalines have a good concentration of commercial establishments. This micro-market houses the textile market of the city, along with tenants from the BFSI sector, business professionals and corporate groups. The upcoming secondary business district is the Piplod–Dumas Road area. With the growing urbanization of the city, its commercial presence is expanding to this corridor.

Adajan, across the river Tapi, is also emerging as a commercial hub with new commercial developments coming up. This area is expected to develop further when the proposed new bridge connecting the Pal Hajira Road to Dumas Road is complete. The capital rate for commercial spaces ranges between INR 4,500–8,000 per sq. ft.

The established retail areas in Surat are Athwalines, City Light Road, Adajan and Dumas Road, where major high-street and retail malls are located. The capital rate for retail spaces ranges between INR 9,000 – 25,000 per sq. ft.

Surat's economy consists of textile manufacturing, trade, diamond cutting and polishing industries, intricate zari works, chemical industries and the petrochemical and natural gas-based industries. The Hazira Industrial area and port is situated in the western side of the city, within the Surat Metropolitan Region. The establishment of large industrial giants in the Hazira Industrial Complex has changed the industrial scenario in the region.

Outlook

Surat houses established diamond and textile industries which will continue to add to the growth of the city. Additionally, DREAM city (Diamond Research and Mercantile city) on Khajod Road, its strategic location in vicinity to Mumbai, BRTS, the Tapi Riverfront project, the proposed mega tourism project near Suvali, the container terminal proposed near Hazira and the fact that Surat is now part of the Government’s 100 Smart Cities program will be future growth drivers of the city.

Rajkot 


Kalavad Road, Jamnagar Road and the 150ft Ring Road are the upcoming destinations for residential development in Rajkot. The city features residential apartments priced in a wide range, from as low as INR 2,500 per sq ft to as high as INR 9,500 per sq ft in quality products which include centralized air conditioning and high-grade flooring and fixtures. 


The major commercial as well as retail areas of Rajkot are Yagnik Road, Kalawad Road and Race Course Road. The outright sale price of commercial spaces varies between INR 3,500-6,500 per sq. ft. and for retail spaces, the range is INR 10,000-14,000 per sq. ft.

Manufacturing is the city’s major industry, with most activities concentrated in the two main industrial estates at Aji and Bhaktinagar. In the past, Rajkot’s economy concentrated around the establishment of cloth mills, while the current trend of industrial growth is towards the engineering and auto ancillary sectors.

Outlook

Apart from automobile and ancillary industrial development, various infrastructure initiatives such as BRTS, the newly-revised DCR, the fact that Rajkot is the activity center of entire Saurashtra region and its proximity of smaller towns, which are future growth drivers of the region.