Office Rentals in Connaught Place

Today, most of the real estate transactions in CP are for rental purposes only and there is very little or almost no sale purchase transaction happening out tere. As most of the property owners in CP have been present here since over two decades, all feel that it is worth retaining the property as it not only yields higher returns but also the capital value keeps increasing multifold.

As per MagicBricks reports, the rentals for commercial properties in CP are between Rs 250 and Rs 1,000 per sq. ft at present, with the middle circle demanding the lowest price and the inner circle the highest.

In such scenario, do you think that the property prices will go up or will remain stable on these levels…?

Israeli Company to Invest in Chennai Real Estate

Interesting development in Chennai real estate markets in deed. An Israeli real estate firm has invested USD 135 million in a Chennai project to develop mixed-use high-end residential and commercial complexes, a media report here said.

Elbit Medical Imaging Ltd (EMI), a Nasdaq listed Israeli firm, has bought 80 per cent of a 135 acre plot in the southern city from an unnamed Indian developer, who will own the remaining 20 per cent, business daily ‘Globes’ reported.EMI will invest more than $150 million in the land for the project and estimates revenue of over $4 billion.

Can Rentals at Connaught Place Rise Even More?

According to online property portals, the rentals for commercial properties in Delhi-Connaught Place (CP) are currently in the range from Rs 250 to Rs 1,000 per sq. ft, at present.

Now that the New Delhi Municipal Corporation’s (NDMC) has sanctioned funds for CP re-development project, property values in this Central Business District (CBD) of national capital Delhi may undergo change.

Though, the NDMC estimates that the project will be completed by July 2010, retailers and property brokers feel that rental values in CP may see a jump, but can the markets further surpass the levels, which are already touching roof?

People say that even large multinationals are not able to cope up with rising rentals here and looking for alternatives…!

Dynamism of Indian Property Markets

Some pointers to how dynamic the Indian property markets are:

•The country’s population of 1.1 billion is set to continue to increase until at least 2030, before stabilising at around 1.5 billion, by which time India will have overtaken China as the world’s most populous country.

•India has a young profile. Half of its population is under 25 years, and the country’s median age is 24 years (2005), compared to 33 in China and 43 in Japan.

•The country is urbanising at a rapid rate of 2.5% per year. The number of cities over one million is expected to double from 35 in 2001 to 70 cities by 2025. India’s "Mega-Cities" of Mumbai and Delhi will be the world’s 2nd and 3rd largest cities by 2015.

These figures simply indicate the kind of opportunities floating around Indian property markets. Please share more facts over Indian property sector

What Real Estate Funds will Bring to The Sector?

After HDFC and ICICI’s billion dollar funds, a number of international players are making beeline to exploit opportunities underlying in the Indian real estate markets. Just look at the pointers below:

• UBS Global Real Estate, the real estate arm of global financial services powerhouse UBS Global Asset Management, plans to launch a $1-billion India specific real estate fund by the end of this year.

• Over $4 billion belonging to various global realty funds is ready to enter the Indian real estate sector on the back of $1 billion which has already come in, according to Bobby Parikh, managing partner, BMR and Associates.

• Morgan Stanley and Goldman Sachs Group Inc. raised $12 billion for global real estate funds, tapping a surge in investor demand for high-return assets.

• The UK-headquartered Knight Frank Group plans to launch a $250 million India-focused real estate fund. This could be the first real estate fund by a property consultancy in India. It will be an offshore fund, and will raise a minimum of $0.5 million or above from high networth individuals.

But, how much these funds will contribute to the development of industry, and the country is the biggest question..!

What Real Estate Funds will Bring to The Sector?

After HDFC and ICICI’s billion dollar funds, a number of international players are making beeline to exploit opportunities underlying in the Indian real estate markets. Just look at the pointers below:

•UBS Global Real Estate, the real estate arm of global financial services powerhouse UBS Global Asset Management, plans to launch a $1-billion India specific real estate fund by the end of this year.

•Over $4 billion belonging to various global realty funds is ready to enter the Indian real estate sector on the back of $1 billion which has already come in, according to Bobby Parikh, managing partner, BMR and Associates.

•Morgan Stanley and Goldman Sachs Group Inc. raised $12 billion for global real estate funds, tapping a surge in investor demand for high-return assets.

•The UK-headquartered Knight Frank Group plans to launch a $250 million India-focused real estate fund. This could be the first real estate fund by a property consultancy in India. It will be an offshore fund, and will raise a minimum of $0.5 million or above from high networth individuals.

But, how much these funds will contribute to the development of industry, and the country is the biggest question..!

Where the Indian property markets heading for…?

Hello friends!!!

As we see that property markets are at unbelievable heights in India, especially properties in Delhi, Mumbai and Bangalore are commanding incredible numbers. Property values are soaring like anything...In fact speculative investments in the sector has charged up property prices in a superfluous manner, most of the times.

Each and every investor expects windfall gains on his real estate investments within a short period of time, and perhaps that is why, the intrinsic value of properties is manipulated by several times…

Expectations of landlords also are touching skies. Today, rental values for commercial properties in Delhi’s Khan Market and Connaught Place, at Rs 400-Rs 490 per sq. ft a month are more than 50% higher than a much-advanced city of Manhattan. Similar is the case with Mumbai commercial properties, where property prices are even more than London!!!

After all where the Indian property markets are heading for…is it a boom or a way towards recession…?

Home loan interest rates in India

The RBI has again increased the CRR this time. Last time when it did so, the home loan rates in India had hardened and most of the people cancelled their home buying plans.

So should we expect that banks like SBI, HDFC, ICICI etc that slashed their home loan interest rates recently will take a back track…? Actually, I have plans for buying house in Delhi and was looking for some comfortable option but not sure which way to go!!!

Should I start looking for financing options right away? Or should I wait for some more time for prices/home loan rates to stabilize..?

Also, what is the price bracket that will get the best rates?

If anyone knows about the matter, please advice.

Pune - the next big promising city in Indian real estate

Pune, the 'Tech city', is located in the western Indian state of Maharashtra. The city has a reputation for its several esteemed colleges and educational institutions. These days, investors and builders are heading towards this alluring city as it has much to offer in the real estate sector. The number of investments in Pune properties and the emerging new real estate developments has given a strong boost to city's economy and infrastructure development. The various attractive features have indeed put Pune real estate market on global business map. It offers a plethora of opportunities in the various industries like retail, IT, BPO, and hotel.

Pune education sector have proved to be the biggest pacemaker for boosting real estate market. This sector is also making rapid strides and has attributed to the foray of students coming in from all across the world. The city produces around 1, 50,000 graduates each year, encouraging the young generation to come forward and contribute to the economy's progress. Thereby, adding to the manpower and fuelling the mentioned real estate growth rate which is contributing a lot to the Pune real estate market and assisting it to come up as a global education destination.

Retail market space is the most preferred sector in the market. The city shares a big chunk of the $350 billion Indian retail market which is expected to grow at a rate of 13% per annum. Pune properties are marking the growth along with prospects, excellent connectivity and educational facilities. Whether it is the industries or education sector, both are nurturing and shaping up in a decent manner.

Pune is expected to observe a sharp escalation of around 500% in the service and industrial sectors. The actual potential lies in Pune residential property, shopping malls, education, and the hotel industry as these segments are rapidly flourishing. The city's infrastructure is developing at a remarkable rate and constructive changes have taken place in the last 5 years.

The city is planning for some very interesting upcoming real estate projects. There is a project 'Business Bay' which will be an exclusive residential-cum-commercial project. It will accommodate high end retail outlets, corporate offices, and the residential units. The upcoming new projects and developments are going to make Pune the next big destination in the real estate market. To find out more about this tech city and about its best locations to invest and much more, visit India's No.1 property site magicbricks.com.

Indian Real Estate On The Rise

Indian Real Estate market is growing at a rapid pace as a result of increased property prices and constant demand from buyers as well as investors. Soaring economic growth, promising demographic and socio-economic factors have also led to a steep rise in demand for housing and commercial real estate. According to experts, The Indian real estate market is expected to grow at 33% between or by 2010. Significant growth in its market size has been noted which is from $12 billion to $50 billion. Total housing spend is expected to grow at a CAGR of 18.60% from Rs 171,800 crore in 2005 to Rs 403,400 crore in 2010. Indian estate market will remain an appealing investment option for both domestic and foreign investors.

The major boost to the real estate market is given by the IT/ITEs companies, setting up their high profile office space in India. Established real estate markets like Mumbai, Delhi and growing markets like Bangalore , Hyderabad, and Chennai are zooming upwards; other Indian cities are also surrendering to the allure of booming real estate market. Construction activity across the country is on an upswing, the commercial property real estate demand is expected to be around 350mn sq ft out of which IT/ITES and organized retailing sector should contribute around 300mn sq ft.

Retail sector has also added to the development of real estate market and will continue to do so as many metros witnessing a spurt in the number of malls and multiplexes, with many major companies entering into the scene. Study says the number of malls in Kolkata, Mumbai, Bangalore, New Delhi, Hyderabad and Pune will grow to 300 by 2010 as against their present strength of 50.

India will have a demand-supply gap of 17.9 million housing units by 2010; the Real Estate market is currently growing at 30 per cent per annum and offering maximum returns to its investors. The domestic real estate market, which is presently estimated at $16 billion (Rs 72, 496 billion), will increase by over three and a half times and touch $60 billion (Rs 2,71,8 asset 60 crore) by 2010.

Booming Property Market in Delhi NCR

In today’s day and age, eyes of the potential buyers and investors are all set on the NCR property market. Ongoing commercial developments in Delhi and NCR have led to an increase in the demand for office and residential space. Also, the limited supply of properties in Delhi is cited to be one of the important reasons behind this sudden boom in NCR real estate market. Parts of Haryana, Rajasthan, Uttar Pradesh and the National Capital Territory of Delhi constitute the NCR region and a boom in this region was first started with Gurgaon and Noida. Gurgaon which is touted as India’s outsourcing capital saw a sharp increase in its property rates within a span of few years. A similar trend was also seen in Noida thereby making it imperative for the real estate industry to look for newer locations.

Towns like Ghaziabad, Meerut and Faridabad are rapidly becoming the hotbeds for massive real estate development. Besides keeping in mind the escalating property prices, most of these areas are also well connected to the NCR thereby ensuring the properties turn into lucrative options for the buyers. But in the midst of aggressive real estate development in NCR, lies the dillemma of finding out the feasibility of making the right decision while choosing a property for commercial or residential purpose.

Delhi, the heart of the NCR region has already reached a mature stage in the real estate sector and this is evident with the soaring property prices and property rentals of both commercial and residential space in most of its prime locations. However the high property prices have not put a dampener to the real estate development as much can be seen happening in areas like Dwarka, Rohini, Mayur Vihar, Jasola and Patparganj. Well connected to Gurgaon and Noida along with the upcoming metro network has seen a spurge in the development of a large number of group housing societies.

Following close on the heels of Delhi are Gurgaon and Noida where the property prices have also increased tremendously within a short span of time. Boosted by continuous commercial development, the rentals in Gurgaon have gone up from approximately Rs. 40 per square feet per month to Rs. 120 per sq ft per month within a period of three years. Indeed, Gurgaon real estate, as the actual trendsetter, leads the property markets in different locations.

Whereas, the second hot favorite location are the twin cities of Noida and Greater Noida. Infact Noida is being projected as the next boomtown in order to lure more foreign investments. In order to meet the real estate demands big real estate companies such as Unitech are setting up exclusive township on the Noida – Greater Noida Expressway.

With so much of rapid development happening in the NCR region, it is only left to be seen how this shapes up the real estate sector in this part of the country. Do you think this would benefit the customer as it gives him more options or the skyrocketing property prices will act as a deterrent? Share with us your opinions and views on how and what you perceive about the growing demand for properties in NCR.