Realty firms urge Dubai NRIs to invest in Chennai

The recent emergence of Chennai as an Indian manufacturing hub for IT and automobile multinationals has fuelled a 50 per cent increase in the city's average property prices, say organisers of a property exhibition targeting Dubai NRIs.

Real estate companies participating in the HDFC India Homes Fair in Dubai say Chennai's economy has driven a major improvement in the quality and value of the city's property developments.

With Dubai NRIs originating from Chennai second only in numbers to Keralites, companies are targeting Dubai as a strong source of demand for their new projects, especially apartment complexes.

"Chennai is one of the fastest growing cities in India and the property market has done very well recently," said Vikram Goel, Dubai-based branch manager of Housing Development Finance Corporation (HDFC).

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"Today the average cost of a property is about 4.5 million rupees, which is a 50 per cent jump since last October."

Goel said the price hike should not deter Dubai NRIs from investing in the property market. He claimed that prices are still competitive compared to other cities, but admitted that infrastructure improvements are struggling to keep pace with the rate of real estate construction.

"People are very comfortable investing in their own state and even today, the concept of real estate is not investment, but actual usage for their own need.

First-time buyers

"Most of the people at the exhibition are first-time buyers who will make purchases for their parents or for back-up when they return to India."

Industry estimates value the total expected investment into Indian real estate at $20billion over the next three years. However in some cities such as Delhi and Mumbai, property prices have cooled off in the last six months.

A.M. Haree, head of marketing at Chennai-based VGN Enterprises, said Chennai's real estate market is experiencing a slight slowdown due to a hike in interest rates, but expects the market to rebound before the end of the year and maintain more stable growth levels in the future.

"Dubai is a good market for us. We have many clients here and overall it represents around two per cent of our total sales," he said.

Goel said the last HDFC India Homes Fair to focus on Chennai attracted a footfall of 2,500, which resulted in around 200 sales during the event at an average of 3 million rupees per sale. Most sales were confirmed at a later date, he added.

This year's three-day exhibition started yesterday in the Hotel Renaissance in Deira and was inaugurated by Consul General of India, Venu Rajamony.

Source://gulfnews.com

Indian property builders targeting NRIs

Imagine this, you are thousands of miles away from India. But with just a click of the button on your computer, you can own a property in a posh neighborhood in an Indian city at a reasonable price without ever stepping foot on the property. Well, you don’t have to imagine it anymore, thanks to KRC Horizon Real Estate.

The company specializes not only in providing residential real estate for Indians living outside of India, but also, in building a platform for international investors and property developers to come together. Just this past weekend, KR Capital Management, LLC (USA) and the company owned subsidiary KR RealTech Consultants PVT LTD (India), along with its Media Partner India Post, held its 2nd Horizon Real Estate Expo of the year in Los Angeles.

"The turn-out during our April Expo was pretty good; that encouraged us to have another expo in California," mentioned Honey Manchanda the Event Organizer, and wife of Pankaj Manchanda, the CEO of KR Capital Management, LLC. Together the husband and wife team brought builders and loan-providing banks to the Indian-Americans to allow them to gain more information about investment opportunities in India.

"It is a buyer’s market in India right now," stated Pankaj Manchanda, "the interest rates are so high that the local population refuses to buy, forcing the property owners to sell at a price demanded by the buyer." Although many predict that the Indian Real Estate market is going through a bubble waiting to burst, bringing the prices to rock-bottom, Manchanda believes it would be quite the contrary. "In a few months, banks will be lowering their interest rates.

The second the interest rate goes down by even a point, real estate will be selling by the seller’s price." Some of the most prominent property builders of India such as Hiranandani and Parsvnath were at hand, explaining the ins-and-outs of the property. Although, most of the builders were offering properties especially for the Non-Resident Indians (NRIs), most of the projects they had at hand were nearly sold out. ICICI bank’s Uma Shankar was also at the Expo describing the entire process of how easy it is for an NRI to own a property in India.

"In the past, owning a home in India was quite difficult, plus, it was a lengthy process. But now, an NRI with an income of US $30,000 or more can own a home with a simple application form," explained Shankar. KR Capital Management LLC is committed to providing a safe and comfortable environment for the buyers, "our goal is to bring the buyers directly to the developers and builders, eliminating the 3rd party in between which could be a cause for hesitation for many buyers," said Manchanda.

The next event KR Capital Management LLC holds will be an exclusive event. The parties who expressed serious interest in purchasing properties in India will be invited to have an in-depth conversation with the builders and developers. For more information about the Expo, you may visit the website at www.horizonexpo.net

Resource://http://indiapost.com

India- A New Land of Hope

Driven by its booming economy and sheer volumes courtesy the world's largest middle class conglomeration, several leading Middle East real estate companies and property majors have made a beeline to India. Emaar Properties, Nakheel, Al Ghurair Group's ETA Star, Al Rostamani Enterprises' KM Properties, Dubai Properties have all unveiled major plans, investing in hotels, malls, healthcare, housing, IT parks and integrated townships in Mumbai, Delhi, Chennai, Bangalore, Hyderabad and other places. This week, Bahraini companies too joined the bandwagon with Khaleej Finance and Investment (KFI) partnering with Kuwait Investment Company (KIC) and Kuwait Finance House (KFH), also known as Baytak, to manage and promote a $200 million Indian private equity fund targeting a variety of activities in growing sectors, particularly India's real estate and industry. So much so, investments into India's vibrant property market from the Gulf region have crossed the $35-billion mark and the combined value of the various real estate projects being developed by them has been put at a staggering $37 billion. This accounts for about 10 per cent of India's projected infrastructure-spend of $350 billion over the next five years to give a fillip to its infrastructure. What more, the Gulf investment volume is poised to cross the $50 billion-mark by the yearend, say industry analysts. India began allowing cent per cent FDI under the 'automatic route' in the construction and development sector from February 2005, to spur investment in the vital infrastructure sector and pave the way for global real estate biggies into the country. It's real estate and construction sectors attracted foreign direct investments (FDI) to the tune of $3 billion in 2005-06, out of a total FDI of $19 billion. Analysts say the yield on real estate investments in India is between 15 per cent and 18 per cent making it a beehive for Middle East real estate majors, a fact that is reflected in Nakheel and Emaar MGF committing $22 billion between them towards property developments across India. Properties giant Emaar recently came out with projects worth around AED140 billion ($38.1 billion) for the coming four years, with AED115 billion spent outside Dubai, including a sizeable chunk in India. Emaar, the largest property developer in West Asia, floated a joint venture in India with Delhi-based MGF Developments - Emaar MGF Land Private Ltd - to develop SEZs, residential projects, hotels and malls and hospitals with an investment of $12 billion. Earlier this year, leading real estate developer DLF tied up with another property major Nakheel to develop two townships in the country at a cost of $10 billion. Similarly, Dubai-based developer ETA Star Properties announced its plans to develop a $923 million IT park at Chennai, taking the group's total investment value in India to $4.35 billion so far.Also on the anvil is the Gulf Finance House-promoted $395 million Energy City India on the lines of Energy City Qatar coming up on a 600-acre site in Navi Mumbai. ETA Star is developing a one million-square foot tech park in Chennai's IT corridor and a mall.The company also launched a 10-tower residential project in Bangalore besides a join venture vehicle with a Mumbai company to develop service apartments, residential buildings and a mall in upmarket Juhu area. The company is also foraying into Kolkata and Hyderabad.

Branded Realtors Debut in India

The next time you go to your neighbourhood property dealer, don’t be surprised if he answers to LJ Hooker or Century 21 or Remax, instead of the usual Chawla Properties or Dubey land agency. For, after global realty consultancies, it’s the turn of brand realtors to make a beeline for India.

While Australia-based LJ Hooker has already set up its shop in the country by opening an office in Bangalore, Ray White (also from Australia) and US-based Century 21 and Remax too are toying with the idea of entering the growing Indian real estate market. Working on a franchisee model, these realtors cater mostly to individual needs and are not looking at a corporate client base.

With the international exposure comes transparency and ethics,” says Ramneek Bakshi, principal, LJ Hooker. The firm is planning to open one main office in every major city in India along with a large number of franchisees. Bangalore will see 4-5 franchisees opening up by the year-end.

As far as the functioning goes, unlike local brokers, branded realtors take fees only from one party (either the seller or the buyer) and the parent organisation takes commission from the franchisee (around 10%). Another area that these realtors specialise in is managing properties for absentee landlords.

1. • LJ Hooker has set up its shop in Bangalore. Ray White, Century 21 and Remax too want to enter
2. • These realtors cater mostly for individual needs and aren’t looking at a corporate client base

Source://FinancialExpress

Golf City in Lucknow By Ansal Properties and Fortis Medicity

Ansal Properties and Infrastructure Ltd and Fortis Healthcare would soon sign an agreement for setting up Fortis Medicity in the real estate major's Sushant Golf City in Lucknow.

The Fortis Medicity in Lucknow would have multi-speciality hospital and medical colleges, sources said. This is in addition to the Ranbaxy-promoted company's plans for a medicity in Gurgaon, where they are believed to have already been sanctioned land from the Haryana Government.

Ansal API is the first real estate company to get the licence for development of a Hi-Tech City in Lucknow. Strategically located on the expressway connecting Lucknow Airport to Gomti Nagar, the proposed Ansal API Sushant Golf City is spread across 2,000 acres and would offer exclusive golf villas providing residential options.

Landscape expert Dr Martin Hawtree from the UK would design the 18-hole international championship standard golf course spread over 400 acres.

Besides the golf course, it would also include a tennis academy run by Wimbledon doubles champion Mahesh Bhupathi. The integrated Sushant Golf City would include residences, five-star luxury hotel, academic institutions, hospital and commercial complexes. The proposed township would also house `Ansal Plaza' multiplexes and malls.

Source://Moneycontrol

Israeli firm to invest USD 180 mn in Indian Real Estate

Israel's Elbit Medical Imaging Ltd has signed a memorandum of understanding with an Indian real estate developer to build luxury apartments and commercial centres in Bangalore.

The two companies will acquire the rights to develop approximately 190 acres of land situated in a luxury neighbourhood of Bangalore, a local business daily reported. The unnamed Indian partner will transfer part of the development rights of 100 acre plot to the joint venture.

The Nasdaq listed company will invest USD 180 million for purchase of land for the venture and make an advance payment of USD 50 million for the land, a deposit that will be returned if the terms of the agreement are not met.

Elbit will offer 50 % of its shares in the venture to its subsidiary, Plaza Centres, with this, company's revenue is expected to exceed USD 3 billion, the daily said. The companies will build villas and luxury apartments, a hotel and 300-400 room apartment hotel, a shopping center, golf course, and various amenities including country club, swimming pool, sports facilities, and recreation areas in two million sqm of space, it said. The project will start within 12 months and will be executed in stages over a period of three to five years, the report said.

Source://Zeenews

Starwood To Invest Rs 750 cr. in Real Estate India

Global hotel and leisure company Starwood Hotels and Resorts Worldwide Inc., on Wednesday announced setting up their chain of Westin Hotels and Resorts in India at an investment of Rs 750 crore. Starwood Hotels and Resorts Worldwide Inc, owners of St. Regis, Sheraton, Westin and Le Meridien brands, have tied up with Vatika Hospitality Pvt. Ltd., a subsidary company of Vatika Group. As part of the agreement, they will introduce their chain of Westin Hotels and Resorts in India with the launch of The Westin Bangalore and The Westin Sohna Resort. “It is a matter of pride for us to introduce the Westin brand to India. We will be developing three Westin properties in India with a collective outlay of Rs 750 crore. We will be introducing the first Westin brand in India with the Westin Resort in Sohna, scheduled to be launched in December 2006, followed by the Westin Gurgaon in 2007,” Vatika Group, Executive-Director, Gaurav Bhalla, said.