CREDO Realty

16/03/2014

Today's changing real estate market dynamics and the volatile world in which our industry operates require knowledge and intelligence to create competitive advantage like never before..

13/03/2014

New Delhi: Tata Housing on Thursday said it has sold 250 flats worth about Rs 100 crore in five housing projects during its four-day online campaign, despite a slowdown in the property market.

Tata Housing's subsidiary Tata Value Homes had offered 200 apartments in 5 projects at Pune, Bangalore, Ahmedabad and Chennai through 'National Home Buying Day' campaign during February 21-24.

In a statement, the company said the offer was oversubscribed 4 times with over 800 applications for the allocated 200 units across 5 projects. Seeing the response, the company offered 50 more units in this offer.

In the campaign, Tata Housing offered homes at its launch price, assuring the consumer upto 33 per cent appreciation.

"Out of the over 250 apartments that were sold, around 20 percent were bought by NRI's and rest from Indians across various parts of the country," Tata Value Homes Head Marketing Pawan Sarda said.

A company official said the total value of the sale bookings was about Rs 100 crore.

Review of the controls over the process for selection of applicants to whom flats were allotted was carried out by KPMG yesterday.

The success of this campaign has strengthened the company's belief accessibility, convenience and reach of the internet makes it an ideal medium to accomplish the vision of being the largest home provider of quality homes to consumers, he added.

Tata Housing had sold more than 50 homes online with sales totaling more than Rs 25 crore in just 4 days at Google Online Shopping Festival.

Tata Value Homes Ltd was set up to exclusively focus on value and affordable housing. Tata Housing is a closely held public limited company and a subsidiary of Tata Sons Ltd. Tata Sons Ltd holds 99.86 per cent stake in the company.

13/03/2014

Mumbai: Driven by rapid urbanisation and demographic changes, especially in emerging markets, global investment in the real estate sector is likely to increase 55 percent to USD 45.3 trillion by 2020 from USD 29 trillion in 2012, according to PwC.

PwC in a report 'Real Estate 2020: Building the Future' said that the investment in developing Asia-Pacific countries, which includes India, is likely to rise by 140 percent to USD 10.2 trillion by 2020 from USD 4.3 trillion in 2012.

"Rapid urbanisation and demographic changes, especially within emerging markets, will lead to substantial growth in the real estate investment industry over the next six years," PwC Executive Director (Capital Markets) Shashank Jain said.

The expansion will be the greatest in the emerging economies, where economic development will lead to better tenant quality and, in some countries, clearer property rights, and will play out across housing, commercial real estate and infrastructure.

"Real estate is an integral part of the emerging markets' growth phenomenon. In India, for example, real estate has played a large part in driving economic growth. It's an exciting time for the real estate sector, in an emerging country like India," he said.

According to the report, the investment in Asia-Pacific countries is highest compared with the US, Europe, Latin America, developed parts of Asia Pacific and even Sub Saharan Africa and Middle East and North Africa.

Jain observed that intense competition for prime real estate will force real estate managers and investors to seek out new opportunities for yield.

"Yet the growing and changing real estate world will present them with a far wider range of risks, which they must be equipped to manage," he said.

Meanwhile, the growing middle class and ageing populations in these emerging economies are boosting the demand for newer types of real estate, Jain said.

While office, industrial, retail and residential will remain the main sectors, affordable housing, agriculture, health-care and retirement accommodation will become significant sub sectors in their own rights, he added. PTI

07/03/2014

GROWTH IN POPULATION TO LEAD TO HOUSING DEMAND OF 2.8 MN UNITS ACROSS TOP 8 CITIES IN 5 YRS

NCR is expected to witness the highest demand across mid – ranged and high-end segments estimated to be 770,000 units during 2013 – 2017 while the expected cumulative supply in the same period for these segments is expected to be 600,000 (approx.). The gap is expected to be approximately 22% over the period . some of the expected demand in the 2013 -14 period is expected to be met through the unsold inventory currently existing in the suburban and peripheral locations.

The New Delhi Master Plan 2020, is expected to unlock 66,000 hectares of land within New Delhi which we expect would be largely cater to the residential sector. Thus new micro markets for residential development are expected to come up, it is yet to be seen in what proportion and configurations these units will be created. Going by past trends, the growth of population of NCR has been steadily ahead of supply and this trend will continue as more and more immigrant population is expected to settle in the city. This additional supply may not affect the values of property in the city.

03/03/2014

Over the past two decades, the global commercial real estate sector has seen a dramatic shift from private sector to public markets. The Indian real estate industry’s growing demand for additional sources of funds and the success story of global real estate investment trusts (Reits) is compelling enough to encourage the implementation of a similar regime in India with requisite adjustments. Typically, Reits invest in completed, revenue generating commercial properties and distribute a major portion of the earnings among investors. They have proven to be an attractive investment option for retail investors as well as for long-term pools of capital such as pension funds and insurance companies who prefer to have a regular income stream. Historically, global Reits have been able to generate significant market traction. The US Reit industry’s market capital, for example, has grown at an average annual rate of nearly 23% in the past 20 years.
Besides other advantages, Reits bring in increased transparency in the sector by adopting better corporate governance, disclosures and financial transparency practices. Being required to comply with the corporate governance, information disclosure and financial reporting standards laid down by the regulator, Reits will bring in a regular information exchange and availability in the public domain. This will result in higher professionalism with a clear emphasis on issues such as risks attached to titles and transaction costs.
Equity financing would certainly improve the debt-equity balance in the market. Reits will also provide a vehicle for addressing non-performing assets (NPAs) including sick or defunct companies holding large land banks. Sale of such NPAs to Reits will have a twofold effect—realization of the real estate’s true value and ease in liquidating the NPA once the high value of the real estate is removed from its books. This will help financial institutions regain strong profitability, which is currently hampered due to the large NPAs booked by them.
It is a well recognized fact that Indian real estate is seeing rising demand due to changing demographies and growing urbanization. As per estimates by the United Nations, India has the highest rate of change for urban population among the BRIC nations (Brazil, Russia, India and China). An estimated 843 million people will reside in Indian cities by 2050, equal to the combined population of the US, Brazil, Russia, Japan and Germany. More than 300 million are expected to be added to India’s working age population by the same year.
The capital intensive sector faces a severe constraint in terms of adequate and structured financing options. It’s time that the economy experiments with advanced funding options such as Reits and provide the industry a globally competitive edge.
Apart from making the real estate sector financially and economically mature, Reits will give common investors a huge opportunity to share in the gains of this asset class.
Providing the investors with an investment avenue that is less risky than investing in under-construction properties, it will also provide an income source in form of rentals, which, in turn, could be a good hedge against inflation as the underlying income will adjust itself to the cost of living.
Moreover, being a more liquid instrument among the current range of property investment vehicles, Reits hold the potential of improving investors’ investment profile through diversification of investment base and increasing stability of income source. The latest release of draft regulations for setting up Reits in India is one big effort by the market regulator Securities and Exchange Board of India to bring in a high level of maturity into the Indian real estate sector. It is expected that with the opening of the sector to Reits, there will be increased capital inflows from overseas markets, and while most investors will enter into joint ventures with local developers to leverage local expertise, there would still be a large section of investors who would prefer to invest in tax-efficient vehicles, which provide them stability in returns and at the same time offer diversity in projects in which investments are channelled.
The draft guidelines are a welcome step and should provide the much needed fillip to the sentiment in the sector. Our experience suggests that the success of a Reit structure depends largely on participation by households. Therefore, it is important to make the participation levels and taxation structures attractive. The subject is more relevant today since any investment opportunity with a visibility of cash flow is always an attraction. With this in view, we would encourage the regulators to address these issues while shaping the structure of Reits in the country.
Introduction of Reits is going to provide a timely opportunity to both investors and the real estate industry to develop a mature and transparent market. Over a period of time, it will also help in developing a price discovery mechanism for the commercial property market in select cities

27/02/2014

"Intense competition for prime real estate will force real estate managers and investors to seek out new opportunities for yield. Yet the growing and changing real estate world will present them with a far wider range of risks, which they must be equipped to manage," it said.

PwC predicted that total investable real estate in developing Asia-Pacific countries, which includes India, will rise by 140% to $10.2 trillion by 2020, from a 2012 total of $4.3 trillion. The increase in percentage terms is the highest when compared to other regions such as USA, Europe, Latin America, developed parts of Asia Pacific and even Sub Saharan Africa and Middle East & North Africa.

27/02/2014

Mumbai's rapid urbanization to boost real estate industry

Nauzer Bharucha, TNN | Feb 27, 2014, 05.13PM IST
MUMBAI: Mumbai Rapid urbanization and demographic changes, especially within emerging markets, will lead to substantial growth in the real estate investment industry over the next six years, according to Real Estate 2020: Building the future, a new report from PwC. At the same time as the industry's opportunities grow, so too will assets invested into the sector, it said.

The report predicts that the global stock of investable real estate will rise by more than 55% to around $45.3 trillion by 2020, from a 2012 total of $29.0 trillion and will expand again by a similar proportion by 2030. The expansion will be greatest in emerging economies, where economic development will lead to better tenant quality and, in some countries, clearer property rights and will play out across housing, commercial real estate and infrastructure.

The report also finds that private capital will play a critical role in funding the growing and changing need for real estate and its supporting infrastructure.

27/02/2014

The much awaited project from the promoters of The Lotus Green Company is finally here. The group housing will be launched in the campus of LOTUS CITY on Yamuna Expressway situated in Sector – 22A, Yamuna Expressway, Greater Noida.

Basic Details of the project:

100 Acres Township - Lotus City
50 Acres for High Rise Apartments
Bang on Yamuna Express Highway
0 Km from F1 Racing Track
Phase - 1
8 Towers in 10 Acres
1800 units in first phase

6 Units on Each Floor
85% Green Area

25/02/2014

NEW DELHI: The new land-acquisition law that came into force this January, touted as one of the signal achievements of the United Progressive Alliance government, is turning into a major obstacle in the way of a key infrastructure project being pushed keenly by the Prime Minister's Office.

The cost of land required for the Delhi-Jaipur Expressway has gone up three times as the new law has sharply increased the amount of money that needs to be paid as compensation to landowners for the ..

Read more at:
http://economictimes.indiatimes.com/articleshow/30959651.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst

New land-acquisition law has sharply increased the amount that needs to be paid as compensation to landowners for the sites on which the projects are proposed.

24/02/2014

Kindly share this page ( CREDO Realty ) in public as much as you can to get the latest news on real estate :-)

24/02/2014

NCR realtors want auto environmental clearance to all types of real estate projects

DELHI-NCR: To meet the deadline of both residential and commercial projects and bring the prices down by at least 10 percent, the Noida-based realtors have demanded for Environment Impact Assessment (EIA), a norm for provide auto environmental clearance to all types of real estate projects in India. Realtors opined that the norm promised by former Minister for environment and forest (MoES) Jairam Ramesh would help the project time frame to come down by around one to one-and-half years which in turn would lead to price correction by at least 10 percent.

Sunil Mantri, president, National Real Estate Development Council (NAREDCO) said, "In 2011, the former Union Minister for Environment and Forests Jairam Ramesh had made an announcement at a press conference held in Mumbai that builders will no longer have to get the mandatory Environment Impact Assessment (EIA) study for residential and commercial complexes if their constructions adhere to green norms as prescribed by international agencies. The Ministry has yet to come out with necessary procedure for implementation of this amendment." He further added that rather than managing environment clearance at a micro level, all projects falling in the overall management of area should receive automatic clearance. This will save hardships and in the real sense, environment can be managed in a professional way.

NAREDCO president suggested that the government should come out with an Ordinance at the earliest for Auto Clearance of projects which are rated Green by agencies such as LEED / GRIHA etc. He further suggested for a mechanism for online approvals within 60 days, because at present, getting approval from authorities takes quite a lot of and energy. The ministry should also scrap Individual project clearances and should come up with Environment clearance on the lines of Development Plan.

Standing in sync with NAREDCO views, Anil Kumar Sharma, president, CREDAI-NCR chapter said, "The auto clearance to the real estate project would help containing the delay in possession period due to the environmental clearances." He said that generally, it takes around two years to get environmental clearance from the MoEF. When the EIA ordinance is implemented, it would curtail this period to around six months, means the possession period, that generally a real estate project takes would come down by around one to one and half years. Since, delay is directly related to the project cost, the sought ordinance will result in correction of the real estate prices as well.

Asked about the project cost and the price correction, CMD of the Amrapali Group added, "It depends upon the location of the project. If it is in Delhi-NCR, project cost would come down by around 15-20 percent while in case of Mumbai or Bangalore, the project cost is expected to come down by 10 percent with the implementation of EIA."

Relating this to price correction in the affordable housing sector Anil Sharma said, "Majority of developers announce new project with undervalued prices as they expect it to increase in coming years. As they quote undervalued prices keeping in mind that it would help them cater money to proceed with the project, they open around 25-30 percent of the net units. So, I expect around 15 percent correction in prices in Delhi-NCR, as majority of project would be completed in two-and-a-half to three years if EIA norm implemented."

He said price correction is related to end users as they would be able to avail one percent interest subsidy on home loans.

Muzaffar Zia, director, Glorice Consultancy, a company which provides solutions of real estate problems to developers and home buyers said, "There are several factors-raw material, land, labour, other municipal clearances et al.- which, affect the project in case there is delay in environmental clearance. The EIA norm is expected to address these issues because these days' developers keep environmental clearance delay in mind while announcing a new project and they price units with these variables in mind. Once these variables are removed, economical advantages coming into the pocket of developers will definitely be passed onto the end users."

24/02/2014