Some of these are regional players, like K Raheja Corporation (Mumbai), Salgaonkar (Goa), Viceroy Hotels (Hyderabad) and Panchshil Realty (Pune). The hospitality major currently has six properties in Mumbai, Goa, Hyderabad and Chennai and operates through five different brands, including Marriott, JW Marriott, Courtyard, Renaissance and Marriott Executive Apartments.
Declining cash flows, difficult IPO environment are substantial complications.
Bangalore, Pune, Hyderabad and the four metros will have around 21 million sq ft oversupply in retail properties by 2012, says a new study.
Realty prices may go up by anything between 10 to 15 per cent in the next six to nine months, with demand exceeding supply, real estate developers said on Friday.
The growing margins suggest that the belt tightening is paying off. For example, the margins of Pantaloon Retail, the country's largest listed retailer, have gone up from 9.2 per cent in June last year to 10.6 per cent in June 2009.Others such as the Raheja-owned Shoppers Stop and Tata Group's Trent, Reliance Retail and Spencer's Retail aren't far behind.
Income Tax (I-T) Department has issued a fresh notice to realty major DLF even as it's appeal against an additional tax liability imposed on it by the I-T Department is being heard.
Property consultants also feel that the hike in policy rates would not have any significant impact on the housing sector, which has witnessed a revival in demand for the last one year.
Redevco, one of Europe's largest real estate investment and development firms, with a $10 billion portfolio, is understood to be looking at investing around Rs 300 crore in various projects of Bangalore-based Sobha Developers.
For developers who came out of a prolonged slowdown of 2008-09, the fund raising spree could be dangerous, say consultants.
Demand for special economic zones (SEZs) appears to be reviving even as realty developers are shying away from developing these tax-free enclaves due to liquidity crunch, according to experts who are tracking SEZs.
Automobile designer Dilip Chhabria nurtures global ambitions, wants to go mass-market in India and diversify into areas like furniture, refrigerators and television.
Real estate developers in Mumbai propose to join hands to construct 5 lakh affordable houses for middle and lower income groups in partnership with the Maharashtra government in the next five years in the fast-growing Mumbai Metropolitan Region.
Group Vice-President (Sales and Marketing) Sudhir Gulati said Canton Greens, which is spread over an area of 100 acres near Amritsar, would offer a comprehensive modern city infrastructure. The group is investing Rs 300 crore (Rs 3 billion) on this project, which is likely to be completed in three years.
The Dubai government has restructured the board of Nakheel, the troubled realty arm of debt-ridden company Dubai World, naming Ali Rashed Ahmed Lootah as new chairman.
Urban development minister Jaipal Reddy said on Friday that he would also ask the finance minister to review his decision to bring the real estate sector under the service tax net. Real estate players were unanimous that the extra burden would be passed to the consumer if, indeed, the service tax is imposed.
Looking for a way out, property developers deal in banned notes.
'The consolidation of the world's fifth-largest economy in the hands of 15-20 corporate giants is a once-in-generation event, which we are focusing on.'
Valuations of projects dated, says valuer. Also, angry shareholders could come together to oppose the proposed reverse merger.
The company switched its focus from premium housing to affordable and mid-income projects to stay afloat
Real estate developer K Raheja Universal Private Ltd wants to scrap one of their notified special economic zones and also surrender a part of another zone, citing lack of demand from the information technology sector.
A property in Mumbai has always been a real estate developer's prized catch.
While the sudden rise in demand for affordable residential housing in the last couple of months has given the much-needed relief to real estate developers, commercial and retail segments continue to face the heat of oversupply, combined with declining rental rates and lower demand from investors.
The Delhi-based Parsvnath Developers received $47 million (Rs 186 crore) from twoSaffron Group funds to develop a residential and shopping complex on a now-defunct bus depot at Kurla in central Mumbai. The Mumbai-based Lodha Group got $54 million from a HDFC-sponsored, Mauritius-based fund. The fund will take a 45 per cent stake in a special purpose vehicle, which will develop projects in Hyderabad, Lodha said in Mumbai on Thursday.
The consortium will use money from commercial development to pay off Rs 5,000-crore debt (Rs 50 billion).
Most developers charge 18 per cent annual penalty from defaulting customers. Over the past year, many people who had booked a home on installments have lost jobs or taken salary cuts. The past 6-9 months have seen many of them defaulting on payments. "The move to waive penalty on late payment is a smart move. This will provide customers the much-needed cushion at a time when a lot of them may want to back out due to their financial condition," said a real-estate consultant.
Property developer Indiabulls Real Estate is talking to investors to raise at least $150 million (Rs 750 crore) from sale of shares to select investors as part of its qualified institutional placement (QIP) plan.
Developers are battling sales slowdown due to rising interest rates and tighter lending norms, spurt in input costs and a lending squeeze from banks hurts.
The company, which has already taken possession of land for the project -- it was inaugurated just two months ago -- is facing a cash crunch amid the prevailing economic downturn, which has slackened the demand for commercial real estate projects. A source close to the development said DLF was unlikely to go ahead with the project as its cash position was not comfortable and it did not expect many takers for the project due to the economic downturn.
Real estate developers like Indiabulls, DLF, Peninsula and even retail giant Future group are all considering converting space reserved for malls and hyper-markets to office space to meet heavy demand from financial institutions, investment banks and large companies.
Recently, DLF, the country's largest real estate developer, wrote to buyers of its new housing project in Gurgaon about a cut in apartment prices by 20 per cent. According to the new plan, buyers will get 5 per cent discount over the basic sale price, another 10 per cent as timely-payment rebate and an increase in the compensation rate for delay from Rs 5 per sq ft per month to Rs 10 per sq ft per month.
Mukesh Ambani has big plans for his real estate biz and is currently in the process of recruiting large number of professionals for it.
Hyderabad-based Indian School of Business is focusing on building emerging market competencies to differentiate from others.
Following the interest rate hike by a few leading banks and the government proposal to slap service tax on the realty sector, the country's largest real estate developer DLF on Monday said properties would turn dearer as developers would have to pass on the service tax burden to end-users.
Central Board of Excise and Customs chairman V Sridhar has also said the realty sector would not attract 10 per cent service tax in effect.
Since September-October last year, when the real estate market was in deep recession, several developers had started offering gifts like a car or a parking space with flats. For example, Kolkata-based real estate developer RDB Group had decided to give a Nano car with flats at its residential project in Sonarpur, South 24-Parganas.
After its Rs 462-crore (Rs 4.62 billion) initial share sale, the real estate developer Godrej Properties on Tuesday said it plans to raise around Rs 3,000 crore (Rs 30 billion) through debt or equity to fund its expansion plans over the next two-three years.
The lukewarm response to the proposed real estate development around the Delhi airport has put its Rs 8,940-crore modernisation in a financial bind.
The competition in the DTH space is set to increase further with players now looking at residential societies and apartments to add subscribers in volumes by offering Multi Dwelling Units (MDUs) that will benefit both parties.
DLF, Unitech and other real estate developers may lower prices up to 30 per cent by mid-2009 to nudge buyers out of their "wait and watch" stance, according to experts.
The property development division would build the integrated commercial complex at Seawoods railway station, Navi Mumbai over 40 acres of land. The proposed project is expected to be completed over the next five years, the company added. Once this project is commissioned, L&T would develop in-house capabilities to build and operate such transit oriented developments around railway stations.
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