Top Stories 

DLF, HUDA to pump Rs 6bn on 16-lane road in Gurgaon

Realty firm DLF has joined hands with Haryana Urban Development Authority to construct an 8.3-km 16-lane road in Gurgaon at an investment of up to Rs. 6bn, according to reports.

Reports stated that the company has signed an agreement with HUDA for the upgradation of the road from the NH-8 toll plaza to Sector 55-56.

The signal-free road with eight underpasses and a flyover would cut the commuting time to cover the distance from the Gurgaon toll plaza to the Golf Course Road to 3 minutes from 30, says report.

Lodha in talks to buy DLF's Mumbai land: reports

Lodha Group is in talks to buy a plot of land in Mumbai from DLF for about $500 million, according to reports.

Reports stated that the sale of the 17-acre plot is seen as part of DLF's plan to sell some of its assets to pare debt of about $4 billion.

 Lodha has emerged as the front-runner for the land plot, says report.

Timely approvals may bring down housing costs: Kumari Selja

The government has formed a committee to evolve a workable strategy for reducing the time taken in approval of real estate projects which could ultimately reduce the cost of houses by 25 to 40%, minister of housing and urban poverty alleviation Kumari Selja said today.

The committee under chairmanship of  Dhanendra Kumar, former chairman of the Competition Commission of India, will submit its report in four months, she said while addressing a conference on affordable housing organised by The Associated Chambers of Commerce and Industry of India (ASSOCHAM).

“It is estimated that the cost to ultimate consumer could be 25 to 40% lesser if the time of granting approval is reduced to six to eight weeks, which is quite achievable in the present day and age,” said Selja.

In Focus Stories

BKC has total stock of 8mn square feet of office space: JLL

A UNIQUE MICRO-MARKET

Bandra Kurla Complex was created by MMRDA as an alternate CBD to Mumbai, with the express purpose of halting the further growth of offices and commercial activities in South Mumbai. Currently, BKC has a total stock of 8 million square feet of office space. An additional supply of 2.5 million square feet is expected in 2012 with the completion of The Capital, FIFC and TCG Finance Centres. Over the last few years, BKC's G Block has gained prominence as the key location within this unique micro-market. The current vacancy level at Bandra Kurla Complex stands at 16%.

Major institutions that have independent buildings in BKC include IDBI, SBI, SEBI, BOI, Dena Bank, SIDBI, PNB, ING, NSE, NABARD, ILFS, ICICI, UTI, Citibank, Canara Bank, Bank of Baroda and Oriental Bank of Commerce. Other prominent institutions include the American consulate, Dhirubhai Ambani International School and The American School of Bombay. Currently BKC also has 2 luxury hotels – The Trident and Sofitel.

Despite the economic uncertainty which continues to haunt the BFSI sector in Europe and the United States, BKC’s office market continues to grow. Today, the indecision among tenants which defined 2010 and 2011 has eased. Over the last 24 months, the market needle has begun to point towards a landlord-favouring market.This change in sentiments has come earlier than was originally expected at the beginning of last year, and can be attributed to the large deals by Citibank, Deutsche Bank and First Rand Bank - and also the lack of new quality supply in the market in 2013 and 2014.

OFFICE SPACE DYNAMICS

 Leasing and buying activity at Bandra Kurla Complex continued to accelerate during the last two quarters. The rent correction appears to be complete, with most existing buildings and new projects recording flat rates or slight increases over the prior quarter. The overall stability of the market is a sign that it has bottomed out.

 Market conditions in BKC have started to shift from tenant-favouring to neutral and a clearer transition into landlord-favourable is expected in 2013. Tenants prepared to make commitments in the short term continue to have leverage, but the window of opportunity to secure attractive long-term rental rates and quality space will begin to dwindle by end of 2012. As it becomes harder to find value options in BKC, some tenants may move to lower-priced markets such as Lower Parel. Larger users are taking advantage of favourable market conditions to consolidate operations. However, smaller firms remain hesitant about making any moves until economic conditions improve further.

THE FUTURE

With the Diamond bourse soon to be operational in 2 million square feet of premises, the people churn at BKC will increase dramatically. How the MMRDA will address the management of this sudden onslaught of traffic remains to be seen. Other areas of concerns at BKC include the continued lack of F&B outlets and sufficient public transportation. The Metro project announced in 2008 would be a game changer; however, this project has been drastically delayed. The monorail project, now scrapped, could have been a significant infrastructure boost for Bandra Kurla Complex.

Various infrastructure initiatives like the Santacruz–Chembur Link Road will help adjacent areas around BKC such as LBS Road, Sion, Kurla, Kalina and Mahim to develop, posing competition for BKC. Many senior executives who work in BKC are expected to shift their residence to Bandra, driving up residential prices in Bandra.

Ramesh Nair, Managing Director - West, Jones Lang LaSalle India

Domestic News

HDIL to sell 14-acre land in Bangalore to Godrej Properties: reports

Promoters of Housing Development and Infrastructure Ltd are planning to sell their 14-acre land in Bangalore to Godrej Properties, the realty arm of the Godrej group, for around Rs. 1bn, according to reports.

Reports stated that the land parcel is located off Sarjapur Road in Bangalore.

Godrej Properties has offered to pay Rs. 980bn, and would increase the price to Rs. 1.05bn if HDIL promoters obtain all permissions, says report.

Bombay Dyeing slumps on Bombay HC order to surrender part of land

Shares of Bombay Dyeing slumped over 9% after the Bombay High Court ruled that the company would have to return part of its Mumbai mill land to Brihanmumbai Municipal Corporation (BMC) and Maharashtra Housing and Area Development Authority (MHADA), reports said.

According to the ruling, the company would have to hand over 65,000 square meter of land, which is one-third of the area, to the two authorities.

Reports said that the court has stayed the order till Jun 30 to enable company to file an appeal.

HDIL plans to reduce debt: reports

Housing Development and Infrastructure Ltd is planning to reduce its debt by 25-30 % in the current financial year through FSI sales,transfer development rights sales and project launches, according to reports.

Reports stated that the real estate company is hoping to raise over Rs. 5bn through two land parcels.

Mumbai shows negative growth in residential Sector as of March 2012: Knight Frank

Century Real Estate signs MOU with Indian Institute of Management Bangalore

DLF plans to start its own fire brigade: reports

Unitech falls on 98% decline in Q4 net profit

MARG FY12 net profit jumps 85%

One Avighna Park wins 5 Prestigious Awards at International Property Awards, Asia Pacific

Mantri Square wins Images Shopping Centre Award

Tata Housing Splashes Colour with the Mumbai Wallbook!

International News

US housing starts rose 2.6% in April: reports

Construction on new U.S. homes rose 2.6% in April to an annual rate of 717,000 units, according to reports.

Reports stated that Housing starts in March were revised up sharply to 699,000 from 654,000, while permits were revised up to 769,000 - the highest level since September 2008 - from an original reading of 747,000.

In April, permits for single-family homes, which account for three-quarters of the housing market, edged up 1.9% to an annual rate of 475,000, says report.


China Home Prices fall in 46 of 70 cities: reports

China’s home prices fell in a record 46 of 70 cities tracked by the government in April from a year earlier, according to reports.

Reports stated that the  eastern city of Wenzhou led declines with a 12.3 percent slump in values from a year earlier, while Beijing dropped 1% and Shanghai prices declined 1.3 percent.


China plans to increase land supply for low-cost housing: reports

China is planning to double the amount of land made available for residential property development this year from the average supply over the previous five years, according to reports.

Reports stated that the government will make 176,000 hectares (435,000 acres) available for residential development this year, compared to the annual average of 87,300 hectares during the last five years.