Smaller cities to fuel real estate growth

As many as 11 tier II cities in the country are emerging as growth centres that could transform the landscape of India, a report by industry body FICCI and Ernst and Young said on Monday.

The FICCI-Ernst and Young Indian Real Estate Report, 2007: Growth and New Destinations, the highlights of which were released today, reveals that besides eight metros, cities such as Surat, Chandigarh, Nagpur, Vadodara, Visakhapatnam and Jaipur are experiencing initial phase of rapid economic growth.

These cities have been rated as B++ in the E&Y India City rating. Delhi and Mumbai rank first and second respectively with A++ ratings, followed by Bangalore, Chennai, Hyderabad, Kolkatta (with A+ rating) and Pune and Ahmedabad (A).

The realty sector in India is growing by more than 30 per cent per annum and this order of growth is shifting the focus of investors and developers to relatively smaller cities and hence there is a likelihood of such emerging cities leading the transformation of the real estate sector, the study says.

The ratings are based on five critical indices, city prosperity, urban governance, business environment, quality of life and infrastructure, encompassing 55 parameters.

Ernst and Young Partner and National Leader (Real Estate Practice) Ganesh Raj said: "An attempt has been made to rank the cities based on scientific methodology and statistical tools. The term tier I, II and II cities are loosely used".

The assessment of potential in different cities across India would assist the government, industry, developers and investors to systematically plan the inflow of investments and the development of cities, he added.

The report, which will be released on September 27 at FICCI's International Real Estate summit to be held in Mumbai, also found out that education, healthcare and medicities are the new avenues that are available for developers, Raj said.

FICCI-E&Y report also carries a survey from leading investors, which revealed that all the respondents believe that more than $5 billion would be deployed into Indian real estate over the next three years with around 20 per cent believing that the deployment would be more than $20 billion.

Almost 80 per cent of the respondents believe that in short to mid term, India as an investment destination is 'excellent' or 'very good' compared to other Asian markets like China, Vietnam, Malaysia, Indonesia and Thailand.

According to survey, more than 50 per cent of respondents believe that high trajectory growth would continue for next 2-3 years.

Highlighting the growth of Indian real estate sector, FICCI Secretary General Amit Mitra said, "We are going to see a major development in the future where housing industry defines the flip-flop of growth and expansion as in the US. We are moving in that direction."

Mitra also noted that due to upsurge in the real estate, new opportunities have cropped up for architects, master planners, interior designers, finance and legal professionals and vaastu consultants.

Source : The Economic Times

India property expo on September 27, 28

The India Property Exhibition 2007 entitled ‘India — destination for investment’ will be held at Al Falaj Hotel on September 27 and 28. India has begun to resurface itself as a formidable economic house and progress seems to be the name of the game with strong foreign exchange reserves, healthy GDP growth rates, rupee appreciation, corporate performances and expanding FII investments,

NRI investors looking for investment in the real estate will have an access to a first-hand information on upcoming and on-going real estate projects as a range of property options from residential apartments, plots and bungalows, to commercial properties will be on display.

India Property Exhibition will showcase some of the biggest names in the Indian real estate industry. Leading builders and housing finance institutions from the country will bring under one roof reputed names, diverse projects and the best financing options from banks so that customers can shop for their dream home with least efforts and maximum convenience.

In India’s fast-growing economy, real estate has emerged as one of the most appealing investment areas for domestic as well as foreign investors.

Apartments, independent house, bungalows, villas, farmhouse, commercial properties, beach resorts and plots will be on display. Details of banks offering housing loans will also be made available to visitors.

More than 150 projects located in New Delhi, Mumbai, Kolkata, Burdwan (West Bengal), Hyderabad, Chennai, Bangalore, Mysore, Mangalore, Hosur, Vizag, Chandigarh, Ludhiana, Ajman, Panipat, Ghaziabad, Mohali, Sonipat, Meerut, Bhathinda, Karnal, Jaipur, Lucknow, Gurgaon, Jodhpur, Kundli,Coimbatore, Trichy, Madurai, Ooty, Thirunelveli, Dindugal, Nagarkoil, Kanyakumari, Tirupur, Salem, Sathur, etc. will be showcased at the exhibition. Indus Fairs & Events (India) Pvt Ltd is organising the exhibition.

Source : Times Of Oman

Parsvnath plans 16-bln-rupee township in Chandigarh

Real estate firm Parsvnath Developers Ltd said on Thursday it plans to set up a luxury township in Chandigarh at an estimated cost of 16 billion rupees over three years.

The 123-acre project will have 3.85 million square feet of residential space, and 270,000 sq ft of commercial space. Estimated revenues will be around 41 billion rupees, it said in a statement.

Parsvnath has a 70 percent stake in the project, with the balance held by the Chandigarh Housing Board, it said.

Source : News.Yahoo

L&T chooses city for its first commercial centre in India

Construction firm Larsen & Toubro (L&T) is venturing into its first commercial project in the country here in Chandigarh. In a city where commercial space comes at a premium, the firm has proposed to set up a five star hotel, malls and business towers on 20 acres along NH-21, close to the upcoming international airport in Chandigarh.

Though the firm had undertaken a few townships and IT park project in the past, the upcoming project is a pioneer effort to move into development of commercial space. The Chandigarh project, being undertaken by one of the subsidiaries of L&T, is expected to entail an investment of over Rs 300 crore.

The firm that has made most out of the conversion policy floated by the UT Administration now has one of the largest chunks of land to be developed as commercial space in Chandigarh.

Property experts feel the company has paid a handsome price for the stretch of land that is strategically located in the city, coming up as a service sector hub. “The conversion charges alone has incurred a cost of over Rs 180 crore,” an L & T executive said.

The price of commercial properties has jacked up by 50 per cent in the last one year as more and more brands and retail chains are seeking space in the city. Out of the other 26 proposals for conversion with the UT Administration, L&T would develop half of the total 40 acre proposed under the policy, sources in the administration told Newsline. Most of the other proposals involve less than an acre that are allowed to convert into restaurants, banks, offices, hospitals and training institutes, sources said.

The UT Administration has already initiated the widening and strengthening of roads in Phase I and Phase II to smoothen the implementation of conversion policy.

Source : Express India