Indian Realty Developers Seek Foreign Help

With inflation pushing up project costs and consumer forums penalising builders for delayed delivery of flats, many developers are now hiring the services of foreign project management consultancy companies and techno construction firms for faster implementation of projects. Some of these foreign companies include Australia’s Sterling Construction System, Meva global leaders in framework solutions known for constructing an entire floor in three days and large project management consultancy companies like Leighton of Australia and Turner of the US.

Knight Frank Sees Home Prices Falling

Real estate consultant Knight Frank India expects further correction in Home Prices if the current slowdown in residential property sales continues. “The volumes of transactions are low and it is a precursor to prices going down. In a lot of speculative areas, prices have already gone down. If these trends continue for another two to three months, it is very likely prices will come down for residential segment,” Knight Frank’s chairman said.

LN Mittal buys stake in Indiabulls

Multi-billionaire LN Mittal has invested $ 75 million in Indiabulls Properties Investments Trust (IPIT), a subsidiary of Indiabulls Real Estate Ltd. Mittal has acquired 3.9% stake in the trust. IPIT, the first Indian real estate investment trusts (REIT) that has decided to list on Singapore Stock exchange, plans to mop up $ 235 million through divestment of around 13.3% stake. The issue is likely to open in the third week of May.

DAMAC Properties signs up 60 real estate agents across India

The largest real estate developers and luxury lifestyle provider in the Middle East signed up with 60 agents in India across metros and Tier one cities. DAMAC Properties has taken this initiative to market and sell their regional properties to the Indian investors keeping in mind its philosophy of customer care.

» Akruti plans foray in Middle East, other Indian cities
Real estate firm Akruti City Ltd plans to make its first international foray in the Middle East later this year, with projects in both residential and commercial segments. The Mumbai-based developer also plans to expand its domestic portfolio to other states in western and central India including Gujarat, Karnataka, Rajasthan and Madhya Pradesh. Akruti’s plans to sell shares privately to units of AIG and Citigroup, to raise nearly Rupees 13 billion.

Hero Group Forays into Real Estate

Munjals promoted Hero Group is foraying into real estate through a company called Arrow Infrastructure. Arrow Infrastructure, which has already developed a residential complex for Hero Honda’s employees in Haridwar, would look beyond executing projects for the Hero Group.

Rising Interest Rates, Realty Prices Mark Doom for Home Loans

Rising real estate prices are resulting in a decline in home loan demand. Although Indian realty market is witnessing a compounding growth, owning a home is still a tough dream for many middle class Indians. Earlier (in 2002-2006), the easy availability of home loans was accelerating the realty growth drive.

But, there is now substantial decline in the demand for home loans. Major banks have blamed the rising property rates as a reason behind the slash. According to a recent survey, the prices of furnished and semi-furnished houses in the metros and upcoming metros are becoming sky scrapping day by day.

Real Estate Firms Engage in Brand Building Exercise

Most real estate players in India have a negative image in the market. To regain a good image in front of people, the real estate companies have started a branding effort, which is moving beyond usual media preparation. They have company campaigns apart from project specific one’s and are gradually increasing and forcefully using the electronic mediums for brand building.

India’s Retail Realty Beckons Israeli Giants

Israeli mall giants, which own many prime retail-linked realty assets across the world, are buying into India’s big buck retail story. Tel Aviv-based mall giant Gazit Globe has tied up with one of the HDFC funds to pump in $150 million into developing assets, including supermarket anchored retail play. Another Israeli major, Big Shopping Group, has teamed up with Lehman Brothers Real Estate Private equity to set up ‘open malls’ in tier I and tier II cities.

Now, NRIs Bet on Stocks, Real Estate

Non-Resident Indians are increasingly inclined towards investing in the Indian stock market and real estate sector. They’re picking up stocks of Indian firms that are seen to be fundamentally strong. Most NRIs are aware of the potential of investments in India but find it difficult to execute a comprehensive plan. Most green card holders have not capitalised on the Indian growth story because of their poor evaluation of the market. NRIs rarely find time from their hectic professional life, they lack proper advice or find handling and monitoring investment transactions inconvenient.

Dolce & Gabbana’s venture with DLF gets nod

The Italian fashion brand plan to enter India has got a shot in the arm with the Foreign Investment Promotion Board approving its single brand retailing joint venture with real estate major DLF. The 51:49 per cent joint venture will see the garment major set up several retail outlets across the country

Build a house from crap, courtesy Sulabh

Doors and window planks made of human faeces instead of wood has become a possibility! Sulabh International has succeeded in developing a strong raw material out of human waste. Mexico-based designers Santiago Sierra and Mariana David have designed doors out it. The doors have been put on display at the Lisson Art Gallery of London. The exhibition of these human excreta-based doors was inaugurated on November 29.