Rentals@ Rs 450 a square foot, Mumbai sets record
Wednesday, August 29, 2007
Mumbai's property market has set a new record.
A commercial property was rented out at a whopping Rs 450 per sq foot in the financial hub of Bandra Kurla complex.Forget residential buildings, which are already above a crore for a standard 2-bedroom flat, the office spaces in Mumbai are now costing something next to one in Manhattan.
Corporates are literally struggling to find a reasonable deal. Over the past 9-months, rentals have shot by 40 per cent in the posh Bandra Kurla complex area in Mumbai.
Limitless Group, a sister company of Dubai based developer Nakheel has recently signed a $ 10 billion joint venture with real estate major DLF, to develop townships in Mumbai.
The Dubai based group has already snapped up 12,000 sq feet in the famous IL&FS building in Mumbai, which is now renting out space in the building at Rs 450 per square foot.
The Limitless Group will pay Rs 54 lakh a month for its own office space.
Rents in Bandra Kurla Complex have now crossed the rentals at Nariman Point and Lower Parel areas where they are at Rs 290 - 350 per sq foot.
Sources say this recent deal at IL&FS already has led the builders quoting sky high prices for mediocre properties. Anuj Puri, Chairman & Country Head, JLLM said, “It’s purely because demand is outstripping supply. 12 months ago the prices were at Rs 250 a sq foot, which though seemed high at that point have gone much higher now.”
Recently, the British High Commission pre-leased a space in the under-construction Naman Chambers for Rs 350 per sq foot.
The Fortune 2,000 building and Windsor Plaza are now quoting Rs 330 a sq foot compared to Rs 250 six-months back.
The Bandra Kurla complex has only 3 lakh sq feet of commercial space to offer at the moment. And that is a far cry from the current requirement.
Industry watchers say approximately 2 million sq feet of office space will enter this market in the next 2 years, and that's when corporates could find some respite from the soaring rentals.
Source: ibnlive.com
Labels: mumbai property rates, property in India, real estate india
Author: Rakesh Malhotra » Comments:
Parsvnath Ready to jump into Overseas Realty
Monday, August 20, 2007
Parsvnath Developers Ltd is now planning to enter the international real estate market now by forming offshore development companies in various countries to kick off projects overseas, even as the
real estate in India starts to slow.
The companies would be set up as 100% units of Parsvnath.
The company plans to expand its footprint outside India to countries such as Sri Lanka, Mauritius, Singapore and the UK and in West Asia.
Parsvnath is present in 48 cities in India. While the firm is growing, Mr. Jain of Parsvnathsays that Indian real estate market wasn’t slowing despite showing signs of sluggishness.
The firm will foray into the offshore markets either on its own or through joint ventures with local developers or the government.
Parsvnath has already entered a joint venture with the Oman-based, Al-Hassan Group of Industries to enter the Oman realty market. Parsvnath is looking at developing stand-alone housing projects, retail projects and integrated townships in the offshore markets.
“The international market provides good opportunities as the real estate market there is more transparent. We also feel we will get better technological expertise in these markets,” According to Mr. Jain.
Parsvnath is also looking at bidding for airport modernization and management projects and is in talks with leading global airport operators to jointly bid for projects.
The company plans to tie up with a couple of airport operators. “We are in talks with some players. We are looking at retaining a majority stake in the joint venture,” Jain said.
source: Livemint.com
Labels: Parsvnath Developers, Parsvnath India, real estate india
Author: Rakesh Malhotra » Comments:
First Leisure Real Estate Symposium in India
Monday, August 13, 2007
Group RCI, the global leader in non-hotel leisure accommodations, today announced they would be hosting their
first Leisure Real Estate Symposium in India. As reported by the World Travel and Tourism Council (WTTC), India is expected to be the third fastest growing country in the world in travel and tourism demand over the next ten years. That growth potential, coupled with the 19.8% increase in the number of Indians living in India with financial assets of more than US$1 million, vs. 6.5% growth worldwide, are important factors that lead to the selection of India as the venue for the Group 2007 Leisure Real Estate Symposium: India, Riding the Wave of Growth.
Day one of the event will feature Peter Giamalva, president of NorthCourse Leisure Real Estate Solutions, who will lead an educational forum offering attendees information from the ground up on the development of various leisure real estate models, including: fractionals, destination clubs, condo-hotels and traditional timeshare. In addition, profit models for each of the various areas will be presented and discussed. Closing out the day, will be a panel discussion of the latest information on legal issues of developing in India. The event also provides participants with ample opportunities for networking and the development of strategic business partnerships.
Day two of the event will open with a key note address from Ken May, chairman and chief executive officer of Group RCI, stressing the importance of aligning development plans with the Indian government's strategic objectives of positioning tourism as a national priority and expanding India's competitiveness as a tourist destination.
To be held August 23 to 24, at the Taj Palace Hotel in New Delhi, India, the two-day symposium aims to help owners, developers and operators of leisure real estate learn about the latest leisure real estate models and have the opportunity to be part of lively panel discussions and question and answer sessions with industry experts.
"The market for leisure real estate, continues to grow globally and should gain further momentum over the next few years," said Kenneth May, chairman and chief executive officer of Group RCI. "In particular, India and Asia are showing some of the greatest potential for growth. The success that our clients have had in developing shared ownership leisure properties in India has led us to believe that there is tremendous value in showcasing India as a country, not just as an attractive destination for tourists but also as an opportunity to explore new formats in the leisure real estate space."
About the Group RCIGroup RCI, part of the Wyndham Worldwide family of companies, is the global leader in non-hotel leisure accommodations with exclusive access for specified periods to more than 60,000 vacation properties in more than 100 countries.
Wyndham Worldwide Corporation is one of the world's largest hospitality companies with leading brands in lodging franchising, vacation ownership, vacation rentals and vacation exchange.
Labels: Real Estate events, real estate india, real estate market in india, Real Estate Symposium India
Author: Rakesh Malhotra » Comments:
Singapore firm - Ascendus India launches India-focussed real estate IPO
Wednesday, August 08, 2007
Singapore-based
Ascendus India Trust has scored a major first by launching the
first ever initial public offering (IPO) which raised funds on the Singapore Stock Exchange with the aim of owning
real estate in India.
The IPO size was 500 million Singapore dollars while the offer price was 1.18 Singapore dollar, officials of JPMorgan, the sole financial advisor and joint bookrunner for the mega issue, said today.
In a presentation made to the media, Kaustubh Kulkarni, Executive Director, Real Estate, JPMorgan said Ascendus India Trust (AIT) was set up in Singapore "with the objective of owning income-producing real estate used primarily as business space in India".
AIT's initial portfolio comprises four world class business parks in three IT centres in India. It plans to grow organically and also through acquisitions.
The investors were indicated that they could expect an yield of 4.75 per cent in FY08 and 5.81 per cent in FY09 on their investment in AIT shares. Incidentally, the regulations there allow a company to indicate possible returns on investment.
Meanwhile, in a research study on
real estate scenario in India, JPMorgan has said the industry is in the foothills of a sustained growth period. It expects the industry to grow from $50 billion in FY07 to $90 billion by FY11.
Referring to rising property prices, it said the prices seem to be at risk given concerns about rate hikes and potential oversupply. The study said the correction in certain micro markets cannot be ruled out but "we are still not in a bubble zone and that a bust is unlikely".
Labels: real estate india, real estate IPO, real estate market in india
Author: Rakesh Malhotra » Comments:
