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..!