With overall vacancy increasing and business and investor sentiment low, why are office rents in many micro markets in Mumbai still increasing? In the recent past, many corporate decision makers have been wondering aloud why the rents and capital values in markets such as Lower Parel and BKC have risen in the last 4-5 months.
It is just the pipeline visibility that is driving developers like Supertech which is building north India’s tallest residential as well as tallest mixed land use project. Theyrather assert that changing demographics, lifestyle and growing aspirations have encouraged them to launch conceptually designed projects with facilities which are matchless and desired by the people.
Interest from international real estate investors in Indian real estate has been limited in 2012. India has witnessed 6% q-o-q growth in direct commercial real estate in Q1 2012, as compared to China which has seen negative growth of -45%, however China performed better in Q2 2012 on the back of one mega deal. In Brazil, investment volumes seem to be reaching a more ‘normalised’, sustainable pace following the supercharged 2010-2011 period.
A DTZ survey has found unrest in Noida Extension has had a mild impact on total number of housing units planned. The survey says that the total number of housing units that were planned before the unrest in Noida Extension has remained more or less the same with a minor downward revision.
The Noida Extension land acquisition fracas was all about the authorities allowing developers to acquire land at considerably low prices from farmers and also changing the planned use pattern from industrial to residential. Farmers revolted and were able to gain wide support from different quarters.
Tata Realty and Infrastructure Ltd (TRIL) proposes to invest over Rs 1700 crore in two to three years for various projects in the country, including Rs 550 crore in Kochi for a premium waterfront residential property, ‘Tritvam’, at Marine Drive.
The Sahara Group, fresh after a string of acquisitions of Marquee Hotel properties in the UK and the US, is in talks with US-based Oasis West Realty to pick up a controlling stake in Beverly Hilton Hotel, a landmark Los Angeles property that has been hosting the Golden Globe Awards.
American property mogul Donald Trump’s maiden real estate project in the country, being developed by Pune-based Panchshil Realty, has been launched.
Kumar Urban Development Limited (KUL) has launched a series of shops at different locationsof Pune at an investment of about over Rs 250 crores.
An estimated 17500 residential units were launched by organised developers in the second quarter of 2012 in major cities across the country, registering a decline of nearly 44% over the previous quarter, says a report by global real estate consultancy, Cushman & Wakefield (C&W). This decline in launches can be attributed to a number of factors such as delay in approvals, significant inventory in certain locations as well as postponement of project to coincide new launches with the festival season.