PropertyWala.com™: Real Estate articles.

Realtor’s New Business Strategy-Luxury Homes

Wed, 19 Mar 2008 05:59:00 GMT

Realtor’s New Business Strategy-Luxury Homes.

As home sales continuously going downward, real estate developers are changing their strategy and showing more interest in luxury home segment by targeting non-resident Indians and high net worth individuals keen on buying that exclusive villa in India. Such business strategy also seems to be supported by market as demand in the luxury home segment is growing sharply. Sobha Developers, DLF, Kalpataru, Nitesh Estates, Unitech, Omaxe, Royal Palms, Lodha Developers and Marvell Realtors are developing projects in cities such as Mumbai, Delhi Pune, Goa, Bangalore and Kerala, with the price tags of average luxury homes varying between Rs 3 crore and Rs 50 crore.
Mr. Nitesh Shetty, chairman of Nitesh Estates, said, “Our customers typically belong to the top management in various corporate firms while some are overseas Indians”. Mr. Shetty has priced its luxury home products in Goa, Bangalore and Chennai in the range between Rs 5 crore and Rs 8 crore. Like Nitesh Estates, many real estate firms have started marketing their projects in the overseas market by organizing property exhibitions and floating sales offices in the countries like the UK and US and UAE.
The Bangalore-based firm is marketing its projects in the overseas market by hiring sales executives and participating in property exhibitions. While it has been there for some time now, the luxury home segment in India is estimated at Rs 2,000 crore with around 30 million potential buyers.
Such homes are typically located on private roads that are fenced off with an exclusive private gate and state-of-the-art security systems including cameras. The amenities could also include a spa, multi purpose court, climate controlled swimming pool, gymnasium and a business lounge.

Dubai Properties displayed at Mumbai Extravaganza aiming Indian Investor

Fri, 29 Feb 2008 06:01:00 GMT

Dubai Properties displayed at Mumbai Extravaganza aiming Indian Investor

Foremost master real estate developer Dubai Properties has participated at the premium luxury show ‘Mumbai Extravaganza 2008’ in Mumbai, India to showcase its most recent portfolio of realty developments including the latest to be announced ‘Mudon’ project, to an elite audience of high net worth visitors and top tier conglomerates.
Mohamed Binbrek, CEO, Dubai Properties, said, “Mumbai Extravaganza gave us an opportunity to present investors with instant information on the latest developments from Dubai Properties, as well as introduce our latest project launches to a new market. Indian nationals are amongst the top investors within the booming real estate market in Dubai”.
In 2007, Indian Nationals spent Dh4 billion on real estate in Dubai and over the past 10 years, they have spent a total of Dh6.5 Billion on the Dubai property sector. While the greater part of these buyers were Indians living within the UAE, 10% of them were living in India or otherwise, proving the existence of a substantial demand for Dubai real estate from outside the UAE.

ING Unit Launches Asian Real Estate Fund In Hong Kong

Tue, 26 Feb 2008 09:43:00 GMT

ING Unit Launches Asian Real Estate Fund In Hong Kong

HONG KONG ING Group NV’s asset management unit Monday launched a fresh Asia real estate fund in Hong Kong that invests in listed real estate securities across the region.

Most of the portfolio will be invested in real estate companies and real estate investment trusts, ING said. The fund is at first being offered only to retail investors in Hong Kong, but ING is looking into offering it in other regional markets.

Portfolio manager Justin Pica said the sector is poised to gain from continued solid economic growth in Asia. He said Asian real estate markets are less mature and therefore have greater possibility to grow.

The market capitalizations of Singapore- and Hong Kong-listed real estate companies are expected to increase by 61 percent and 46 percent, correspondingly, through 2013. Furthermore, real estate has a low correlation to equities and bonds, Pica said.
ING Investment Management currently manages more than US$2 billion in real estate portfolios in Asia.

Finding Manhattan on india’s real estate map.

Fri, 22 Feb 2008 12:17:00 GMT

Finding Manhattan on india’s real estate map.

The miraculous journey unfolds in a new housing development in Bangalore’s Electronic City named “Concorde Manhattans”, which sits on prime real estate across from a Wipro Technologies campus. While location is the major draw, developer Concorde Group is also betting that its American naming scheme will help attract Wipro’s globe trotting employees.

Mr. Alok Mishra, The marketing manager of company, said,“Manhattans is a brand associated with grandeur”.
Turns out naming each street and section of the gated community also was an exercise in workplace bonding. Mr. Gangadhar Gowda, company’s human resource executive, said, “We searched the Net, and everybody gave one name”.
Buyers are booking new suburban luxury flats before ground-breaking, so developers must build up several projects and have to generate names by the dozen.

Gurgaon is filled with such aspirational places. In DLF City, Phase V, residential developments such as Wellington Estate, Princeton Estate and Carleton Estate overlook a landscape that is still defined mostly by construction and open dirt fields. A handful of security guards sit at the entrance to Princeton Estate, keeping track of everyone that comes in and out. Manicured shrubs and short, pruned trees line the paved roads that lead to each of the 20-storey peach-coloured towers that, again, have their own security guards.

New Real Estate Opportunities include Hospitals, Logistics Warehousing and Airport.

Fri, 22 Feb 2008 12:15:00 GMT

New Real Estate Opportunities include Hospitals, Logistics Warehousing and Airport.

The traditional real estate areas are residential, commercial, retail and integrated townships. But the future trend will not be the same. Future real estate area will include medicities, hospitals, logistics and warehousing, airport or port based business districts, mass housing and slum rehabilitation, and education infrastructure.

The healthcare sector is growing at an yearly growth rate of 16% and is projected to touch a turnover of $50.2 billion by 2011. It is expected that an investment of $77.9 billion will have to be made in order to achieve the best possible target of 1.85 beds per thousand population. Out of this $77.9, $69.7 billion is expected to come from the private sector.

Medical tourism is projected to grow into a $1.5 billion industry by 2010. Over the last five years, the number of patients visiting India for treatment has risen from 10,000 to about 1,50,000

The concept of health cities has already started in the country. The Apollo group has developed the Apollo Held City in Hyderabad, which has a 300 bed much the specialty hospital and the total built-up area of 2 lakh sq ft. Other corporate as Aditya Birla group and Reliance (ADAG) have shown interest in developing cities. Several foreign groups such as Harvard Medical International and Cleveland Clinic have also entered the country for the same.

India’s Prime Real Estate Plans $500 Million Fund.

Wed, 20 Feb 2008 11:43:00 GMT

India’s Prime Real Estate Plans $500 Million Fund.

Indian fund manager Primary Real Estate Advisors is planning to launch a fund worth as much as $500 million, probably in the second half of this year, but said it will tread carefully as the country’s property boom stutters.

Foreign investors have taken advantage of such funds to rush into property development in India since it eased rules on inward investment in the construction industry in early 2005, sparking rampant land speculation and a near quadrupling in prices.

But despite signs of a slowdown — home sales volumes have fallen by one-fifth in Mumbai and 40 % in Bangalore in the last year — the head of Primary Real Estate, Ashwin Ramesh, is convinced that North American and European investors will invest.

“We would typically underperform in a raging bull market but overperform in a flattish market.”

Ramesh expected to launch the new fund within six months to a year, and hoped to raise between $300 million and $500 million.

“At the moment there’s interest in North America and London, but we’re in touch with people all over the place,” he said, adding that he was busy expanding a team that is now investing a $32 million fund closed in mid-2007.

Primary Real Estate would aim for internal rates of return of 15 to 20 percent, Ramesh said, below the usual 20 to 25 percent often advertised by funds in Asia’s up-and-coming property markets of India, China and Vietnam.

Ahmedabad New Center of Real Estate Boom.

Tue, 19 Feb 2008 09:15:00 GMT

Ahmedabad New Center of Real Estate Boom.

The real estate development in Ahmedabad has seen tremendous growth over the past two years. The property prices have shot up faster than even Delhi or Mumbai and investors are making beeline to buy them.
A. Mukhopadhyay, an NRI is looking to purchase a house in Ahmedabad. Mukhopadhyay has his roots in Kolkata but he is not paying attention on investing in property there.
According to him buying a property in Kolkata will not give return like investing in a property in Ahmedabad.
Gujrat capital Ahmedabad is moving much faster and so the cash. The land prices have more than doubled in the last couple of years, which gives details about the rush at the first ever summit of housing and real estate developers.
In the previous two years a lot of companies have opened up in the city. As a result, the demand for houses has gone up so has the price. Last year, a two-bedroom flat at a well-known location used to cost Rs 12 lakh but today it is of almost Rs 25 lakh.
Rushabh Patel, Secretary, GIHED told that the way property prices got doubled in last one year in Ahmedabad, thanks the town planning, people are buying more and more properties as these houses are bringing in not only faster return on investment but steadily,” said
A city that was earlier believed suitable for industries is now considering a real estate boom for residential purposes as well. Over the past year the property prices have shot up faster than even Delhi or Mumbai.
According to the director of Kunj Properties “they are looking for lands in remote places as customers are ready to buy there also, mostly NRIs and people coming from outside”.

Red Fort capital increases investment in Indian Real Estate.

Tue, 19 Feb 2008 09:08:00 GMT

Red Fort capital increases investment in Indian Real Estate.

Red Fort Capital Advisors has planned to bring in an additional $500 million in the next two years. It is a well known international private equity firm. The firm is considering upon its portfolio into growth sectors like logistics, especially the warehousing in the near term. It has $425 million real estate investment focused fund for India and plans to bring in an additional $500 million in the next two years.

Mr. Kuldip Chawlla, one of the Directors said,“We are looking at housing projects, especially affordable one’s in the top 15 cities as well as re-development projects, especially in cities like Mumbai through this fund”. Further he said that Red Fort Capital, which has already committed $250 million last year, in projects in Chennai, Bangalore and Hyderabad, sees affordable housing (apartments of 1,000 sq.ft. between Rs 10 and 25 lakhs), as a high growth segment.

Hyderabad, an investors choice in Indian Real Estates.

Tue, 12 Feb 2008 10:35:00 GMT

Hyderabad, an investors choice in Indian Real Estates.

Hyderabad is among the foremost choices for community who wish to invest in Indian Real Estate. Hyderabad is a place with a soaring economic growth, outstanding architecture, great infrastructure, and a flourishing Real Estate and construction industry.A lot of the property is at a standstill in the form of plans on paper but already the sale and purchase of these properties is a fine business. There are various properties that have already been visited by many owners despite the fact that construction has not even started. People are making money from property in Hyderabad basically with just land and nothing on it.Real Estate has perhaps made more millionaires as compared to other industries in Hyderabad. Real Estate Investing also presents many rewards including cash flow, security, long-term wealth and a number of tax benefits.

Real Estate Investing is something that anyone can learn and prosper at despite of age, gender, religion, race, education or current profession. You can begin with nearly no start up costs, and work this business from your home full-time or part-time.

There are no licenses required to invest in Real Estate, in fact you may have previously done so by purchasing a home! Real estate presents a practically nonstop supply of properties. There are millions of properties in the market, and thousands more become available each day, all over the country and especially in Hyderabad.

As a Real Estate Investor at this time you have choices like never seen before. Some Real Estate Investors are talented enough to purchase properties of Hyderabad for less amount than what some current owners originally paid and many Real Estate Investors are purchasing more properties at this time. Also, Real Estate Investors are able to spend even less money on homes that need some type of reconstruction.