Information technology ventures rush to smaller cities

Aim to cash in on first mover advantage

Tier-III cities are set to encore the bull run observed in real estate sector in metros and other cities as the real estate prices are touching a plateau in metros and tier-II cities.

These tier-III cities will see lot of investment as real estate developers, IT/ITES firms and new age retailers vying to cash in on the first mover advantage in these markets.

They are banking on the factors like low real estate costs, vast land availability, a large talent pool and rising quality of life for growth, says a report 'Emerging Growth Centres' by global property consultancy Knight Frank.

The report says that the growth of Indian rich and consuming class coupled with falling rates and other fiscal incentives on home loans has increased the risk appetite of the average Indian consumer.

This has further fuelled by increase in the size of 25-55 age group of earning population and increase in the size of urban population.

Increased liquidity in the real estate sector through there global real estate funds and private equity funds is transforming the realty scene in India, it says.

It lists cities like Chandigarh, Ludhiana, Lucknow, Jaipur, Ahmedabad, Goa, Vishakhapatnam, Coimbatore, Baroda, Guwahati, Bhubaneswar, Surat, Nagpur, Indore, Mysore, Vijaywada, Mangalore are expected to benefit from the new interest from the sunrise sectors.

Knight Frank India chairman Pranay Vakil believes that wherever the IT/ITES find cost-advantage and availability of English-speaking manpower, they would move to those places.

"To the extent the government gives support to the industry and to the extent the companies get English speaking population, the IT firms gravitate there," Vakil says.

Cities are primarily riding the bandwagon of real estate and retail growth based on the expansion of IT/ITES firms. For instance, Chandigarh is attracting many IT/ITES firms to its Chandigarh Technology Park (CTP).

Also a approved SEZ, CTP has attracted biggies like Infosys, Wipro and IBM.

DLF Group has developed DLF Infocity to provide spaces for the tech firms.

Though Real Estate Chandigarh does not have much to offer in terms of residential development, the report says that the peripheral areas including Panchkula, Mohali, Zirakpur, Dera Bassi and Nada Sahib are seeing a lot of development.

Ahmedabad is expected to attract a lot of IT/ITES firms since the cost of their operations are 40-45 per cent lower compared to the tier-I cities of the country.

With tax incentives, concessions and a FAR of 2.25, the city is expected to attract lot of IT/ITES firms.

Bhubaneswar is another destination which has been spreading its roots in IT. IT majors Infosys and Satyam are contemplating their expansion plans. Apart from Infocity-I, DLF is coming up with IT Park in Chandaka Industrial Estate. Genpact has also announced its plans to set up BPO SEZ in Mancheswar Industrial Estate. A bio-tech park is also on the anvil.

Vakil says though all cities don't have the propensity to consume, as the IT sector moves in, it would gives enormous disposable income in the hands of aspirational young consumers.

This would drive the growth in retail and real estate sectors, he says.

Ludhiana of Punjab is fast emerging as the retail hub.

The city is witnessing the development of 11 malls in different locations which are going to be operational in 2-3 years.

Large format malls like 4,71,000 sq feet Westend Mall are also underway in Ferozepur Road.

Pakhowal Road is seeing a lot of residential projects turning into retail and office destinations.

The report states that Lucknow would emerge as an ideal destination for integrated townships.

Big developers like Parsvnath, Halwasia, Rohtas, Eldeco and so on have started projects in the city.

KPMG executive director Jai Mavani believes that realty development is happening in the cities and areas which are near to proposed SEZs and industrial clusters.

For instance, Nagpur is seeing a lot of real estate development since it is touted as the logistics hub in the country.

"Developers will show exuberance in tier-II and tier-III cities. But if oversupply of real estate happens and if the macro-economic indicators do not keep pace, it will kill the market," Mavani says.

Underlining the trend, 'Urbanisation Bonus' report by Goldman Sachs also talked about population shift to townships and provinces near the industrial clusters. Resource://business-standard.com

Punjab attracts NRIs in many ways

They may not yet have any telling impact on the elections, nor have they yet fully realised their potential to invest in their state, but it is visible now that non-resident Punjabis are more interested in home affairs than before.

Some may attribute it to the overall effect that India's growth story is having on all non-residents. Others, might point towards the likelihood of NRIs getting voting rights. And then there would be those who might credit the government efforts for this. But, certainly, the intrepid global Punjabi, known for his uncanny ability to reach green pastures, is now looking homeward.

Recently, hot on the heals of the Pravasi Bharatiya Divas - 2007, the International Punjabi Chamber for Service Industry (IPCSI) brought NRIs on a single platform to introduce them to investment opportunities.

The conference identified the areas of development in the area of infrastructure including roads, highways, rail, airports, power generation, SEZs, retail, real estate, housing, aviation, hospitality, travel and tourism, healthcare, schools, colleges, media-entertainment and other sectors of the service industry in north India, especially in the states of Punjab, Haryana, Himachal Pradesh and the union territory of Chandigarh.

The event took place under the banner Parvasi Punjabi Divas, which is in its fourth edition. It addressed the cause titled 'Global Investors Conference for Infrastructure Development'. The event took place in the city on January 11, 2007 registering fair governmental participation from the northern states, real estate companies and NRI investors.

The primary motive was to identify and showcase the areas where NRIs could invest and how the public-private partnership (PPP) platform had made inbound investments easier with less paperwork and reduced time for sanctions. The private sector, with its professional maturity and resources, was urged to play a more active role in developing public infrastructure and other facilities and to make the service industry a vital segment of the region's economy. With the theme 'Think India - Think North', the event focused on greater NRI investments flowing into the northern region.

The Governor of Haryana, Dr A R Kidwai, and Himachal Pradesh Governor V S Kokje were among those who highlighted the investment potential of the northern states and stressed the importance of "thinking together and being cohesive beyond the limits of political boundaries."

Organisers made it clear that the objective of Parvasi Punjabi Divas was to expand the scope of the forum by including the states of Haryana, Himachal Pradesh and the Union Territory of Chandigarh in order to strategise policies jointly.

On his part, Punjab Chief Minister Captain Amarinder Singh has been assuring NRI's to resolve their problems on priority basis when returned to power. He claims his party is alive to the "problems and hardships" being faced by the NRIs and he had already taken up the issue with Punjab & Haryana High Court to set up special courts for the quick dispensation of justice to the NRIs.

However, the High Court declined the proposal of the state government and assured that all the cases pertaining to the NRIs would be disposed of on the priority basis.

He has already set up a Special Cell for the welfare of NRIs in the Chief Minister Office and a separate department for the welfare of NRIs had also been set up under the supervision of a Financial Commissioner level officer.

NRIs cheated back home or involved in a dispute over property or even marriage, are just a phone call or an e-mail away from relief. All they have to do is to contact the NRI cell of the Punjab Police.

Lodging a complaint is a simple process. Recently, the Cell also started a NRI Radio helpline to handle grievances of Canada-based NRIs.

Located in Chandigarh, the Cell works round the clock to register NRI grievances.

NRIs' relatives too can approach the Cell. Since its formation in February 2004, the Cell has handled 932 complaints, out of which 771 have been disposed off satisfactorily, 161 cases are still being looked into.

The nature of complaints reveals that a majority of the NRIs face problems relating to property or money. Marital problems, theft and false allegations follow suit. NRI victims can send their complaints through an e-mail pbpolicenri@yahoo.co.uk.

The state is also grappling with a spate in crime. The crime rate has increased by about 20 per cent in the state, according to top police sources. Murder cases, for example, increased to 852 in 2006 against 743 in 2005. Similarly, 386 cases of rape were registered last year as compared to 366 in 2005, while the kidnapping cases increased to 654 in 2006 from the previous year's figure of 514. There has been a hike in burglaries and thefts which rose up to 5,670 as compared to 4,853 in 2005. This would surely be an area of concern for NRIs.

And, they seem to have taken note of the role they think they could play in making their home state a safer as well as a more attractive place to put money in. That's probably why there was such great interest shown by NRIs in Punjab's state elections this time.

Earlier this month, a media report said: "It is raining NRIs in Punjab. With India clocking an impressive growth rate and making waves the world over, an estimated 50,000 NRIs are in the state to throw their weight behind the candidates."

Whether or not that enthusiastic response had any effect on the outcome, observers feel the community wants a stake in the prosperity wave and the easiest way to do it is to tap those who will rule the state for the next five years.

Source://thepeninsulaqatar.com

Housing complexes get snazzy

At a time when buyers are waiting for real estate chandigarh prices to fall further, developers are devising new ways to attract them. Developers in the Chandigarh neighbourhood of Mohali and Zirakpur are projecting additional features like shopping malls, golf courses and sports academies in their residential projects.

The Ansal API Golf Links in Mohali boasts of a "multi-usage" mall. "We have a multi-usage mall with a multiplex cinema and a hotel of international standards," said vice--president, Marketing and Corporate Communication, Ansal API, Kunal Banerji. And why a mall in a township? Banerji answered, "It is for the convenience of the customer."

Another example is Chadha Group's West End Estate, also coming up in Mohali. The Group recently had announced developing the West End Estate on the patterns of a sports village. In a recent press conference, group's director Manpreet Singh Chadha had stated, "The world-class sports facilities available at the West End Estate will be exclusively available to residents of the township only. It will enhance the sporting skills of budding athletes to the residents living within the estate."

It is not just international standard malls and sports academies that are being used to carve out a niche in the buyer's mind, the glamour of Bollywood stars is also being put in use for the purpose.

The Bollywood Heights coming in Peer Mashala area of Zirakpur is an example, offering the ordinary people the chance to live with the stars. Sanjay Sharma of Bollywood Heights said, "Actors like Ajay Devgan, Amisha Patel, Isha Kopikar and others are coming to Bollywood Heights. This will add glamour to the project."

Others are projecting their NRI clientele to attract customers.

Source://expressindia.com

Ansals to invest Rs.150 billions in Punjab

The Ansal Properties & Infrastructure (API), a Delhi based real estate developer would invest about Rs 150 billion in Punjab in the next three to four years in various real estate projects.

API has its plan lined up for Ludhiana, Jalandhar, Bathinda, Pathankot and Amritsar for real estate projects. It has also signed with Roots Corporation for setting up budget hotel `Ginger` at the proposed housing project in Mohali where the space would be given on lease to Roots Corporation .

The company announced Tuesday its latest township in Mohali `Ansal API golf Links`. This will be an integrated township with plots, luxurious villas, condominiums, penthouses, commercial space and malls, which will cater to the growing needs of the people in Chandigarh.

The project to be spread over 200 acres would be expanded further. Also, there would be development of more than 1.4 million square feet of commercial area at the proposed site.

Ansal API Director Pranav Ansal said, ``We would invest about Rs 20 billion in the Mohali township project and the project is likely to be completed in 3-4 years.``

He further said, ``The township has been designed by the Australian architect firm, Woodhead which promises to offer splendid lifestyle for its residents.``

``Chandigarh is growing very fast and there is definite surge in demand for quality and comfortable housing, especially with the growing IT sector here. We will evaluate other opportunities in the area,`` Pranav Ansal further added.

Apart from Mohali, it has plans to develop a township on 225 acres in Ludhiana, besides business park and boutique mall. In Jalandhar, it is coming up with two townships, shopping mall etc. The company also has plans for Amritsar (for multiplex and township), Bathinda and Pathankot.

The company has also tied up with talc maker Ritesh Industries to set up a a real estate project. It is a joint venture project in which Ritesh Industries has entered into a joint venture agreement with API, the flagship company of the Ansal Group, for setting up about 40 acres real estate project on the Ludhiana-Chandigarh state highway.

Apart from commercial and residential complexes, the company has decided to foray in SEZs and hotels, apart from residential and commercial spaces. The company is also coming up with an SEZ on 250 acres near Murthal in Haryana.

The shares of the company closed down Rs 20.05 or 2.4% at Rs 816.7 (Monday). Volume of shares traded at BSE was 46,400.

Source://punjabnewsline.com