Realty Boom- An Exciting Career Option
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Realty Boom- An Exciting Career Option Management and engineering graduates are finally placing faith on the booming real estate industry. âReal estate is emerging as an exciting and challenging career option, with realty consultancy companies now offering top dollars to lure talent,â says Mr Ankur Srivastava, MD, DTZ Debenham Tie Leung. With two offers in hand last year, one from a leading bank and another from DTZ, Mr Deepak Dutt (name changed) with a management degree, chose the latter. âThe money is good and there is tremendous opportunity for growth. Real estate and retail are the sunrise sectors of our economy and offer exciting opportunities for both freshers and lateral hires,â says Mr Dutt. While DTZ has been visiting several campuses over the last couple of years, this year the London-based consulting firm plans to hire 20-25 graduates from college campuses. âDTZ is visiting premier educational institutions including IIT Kharagpur, IIM-C, Fore School of Management, Nicmar and SRCC this year. C! ompensation packages range from 5-8 lakh for freshers and about 10 lakh p.a for lateral hires,â explains Mr Srivastava. Real estate consultant Jones Lang LaSelle has already recruited 24 students from IIT-Kharagpur this year. Students are now showing an increasing interest in joining real estate firms,â explains Professor Mr Gautam Sinha, professor-in charge, training and placement, IIT Kharagpur. âThe on-the-job training that leading realty consultancies provide is truly world-class and is one of the reasons that attract freshers says an industry analyst. The Economic Times New Delhi Edition December 21 Dream Girl Sets Chennai Realty Prices Soaring Actress Ms Hema Malini has sent the real estate prices soaring in the city she hails from. A big-time builder has signed up with her to build six apartments on a 14,400 sq ft plot owned by her in the posh Poes Garden area of the city. Each flat, when ready, will come for a staggering Rs 6 cr. Not to be left behind, another big city builder, Bala Abirami Builders and Developers, has firmed up plans to construct 10 apartments in the same Poes Garden area. The flats have been priced at Rs 14,500 per sq ft, the highest price so far for any residential project in the city. Last year, Kgeyes had launched a four-apartment project in the costliest Boat Club area at Rs 10,000 per sq ft last year. Boat Club holds the status of the main lung space of Chennai and boasts of some of the top industrialists as its residents. The Times Of India New Delhi Edition December 18 Realtors To Get Land Title Deeds Insured The real estate developers may have to compulsorily get the land title deed insured before selling the property. This will mitigate the financial risk of the buyer in case of a litigation in future. Ministry of housing has prepared a Cabinet note to the effect with twin aim: protecting the interest of buyers and encouraging foreign direct investment (FDI) in the sector. âCompulsory insurance of land deeds would help both domestic as well as foreign buyers,â a senior official said. There is nothing new about the clause. Mandatory land title insurance has already been practiced in the US and some European countries. It is meant to protect a property ownerâs or lenderâs financial interest in property against loss due to title defects, liens or other matters,â Haryana Urban Development Authority (Huda) administrator Mr SP Gupta said. Besides providing financial security, the legislation would also ensure investors that the property has a clear title as insurance compan! ies would undertake due diligence before insuring the property. Insuring a property will also certify the type of land use. No one will be able to dub agricultural land as commercial land and dupe an investor. Differential rates of insurance for different categories of land would not only be informative but also act as a deterrent, the official said. The Economic Times New Delhi Edition December 22, 2006 New TDR Norms To Give Realty Developers A Boost The new TDR norms launched by the Bengalooru Mahanagara Palike seek to give real estate developers having deviation in their properties, a shot in the arm. Under the new rules, the property owners who have building deviations can regularize these deviations by purchasing the Development Rights Certificate (DRC) from anybody whose land is being acquired for road widening works of the BMP. TDR will also permit an additional Floor area ration (FAR) to owners of land acquired for road widening and other such purposes. With the implementation of TDR, the city corporations are empowered to relax building bye-laws to benefit property owners and the task of land acquisition is made easier. The city has been divided into A, B and C zones based on the value of the property in that neighbourhood. "One of the major modifications approved by the State Government is that if a property in C zone has been acquired, then the owner with the help of DRC can build more on his or her property in! zones A or B or sell it to someone who can use the DRC for his buildings in the two zones." According to Mr N Jayaram, Joint Commissioner Enforcement, BMP the earlier rules governing issuing of DRCs to property owners whose land had approach roads with a width of 30 ft has been increased to 40 ft. All this means that the DRC obtained after surrendering the property can be used anywhere within the ambit of the local planning authority. The BMP has also explored the possibility of applying TDR in acquiring land for road widening works in major arterial roads in the city. Of these, Nrupathunga Road, Avenue Road and Seshadri Road, have been earmarked for the initiative. Times property December 22 Rating Cos Being Requested To Crack The Realty Code With real estate financing gaining momentum and becoming more organised, banks are increasingly tapping doors of rating agencies with a request to offer rating services on shopping malls and restaurants. Even rating agencies have begun to look at this sector with greater focus and have added newer verticals such as real estate, retailing infrastructure and IT-enabled services. While larger players like ICICI Bank and HDFC may have own internal rating departments to study potential projects, which they may look at financing, smaller banks which may not have the wherewithal to put in place their internal teams may look at rating agencies in a bid to outsource the entire due-diligence procedure. In the recent past, banks have even appointed professional auditors and civil engineers and are certainly looking at making maximum use of rating agencies while taking decisions pertaining to loan appraisals. A senior official from Fitch said, âBanks have been approaching us with requ! ests to provide rating rationales on shopping malls, restaurants, etc. As far as developer ratings are concerned, although we do not have a specified rating scale, more reliance is placed on the viability of the project than the developersâ credentials.â Another credit rating agency, CARE, has specialised project advisory committees to prepare reports analysing cash flows and economic viability of industrial ventures such as power projects, road projects, retail chains, etc. Crisil, on the other hand, has bank loan ratings to assess loan receivable for a variety of borrowers, including real estate ventures like malls. The Economic Times New Delhi Edition December 21 Govt Plans To Bring Property Dealers Under Regulatory Net The government is planning to bring property dealers under the regulatory net. To start with, it will be mandatory for brokers to get registered with the realty regulator, even as brokerage charges are set to be capped at 2pct of the property value. The intention is to save buyers from the clutches of unscrupulous property dealers besides keeping a tab on black money, a government official said. At present, in the absence of any regulation on this front, property dealers charge around 2-4pct from buyers. Often more than one broker is involved in a property transaction and they force the buyers to pay brokerage to all of them. Experts in the real estate market say that the move will discipline property dealings. The 2pct cap will be part of a series of reforms that the government plans in the area,â National Real Estate Development Council (NAREDCO) deputy director Mr Sumit Jha said. Some of the other proposed reforms are introducing mandatory area-wise licences for dealers and regular training programmes. This is to make sure that the dealers are listed with the realty regulator and also keep unscrupulous elements at bay. The Economic Times New Delhi Edition December 26 NRI Divas 2007 On 9th and 10th January 2007 At New Delhi NRI Institute is celebrating NRI Divas 2007- âTo Strengthen The Bonds Between Indians and Non-Resident Indiansâ on 9th and 10th January 2007 at Hotel Inter Continental The Grand, at Barakhamba Avenue New Delhi. The Event is expected to be attended by more than 400 Global Indians. Honâble Union Minister of State for Industry Shri Ashwani Kumar, the British High Commissioner to India, H.E. Sir Michael Arthur KCMG, Trinidad & Tobago High Commissioner to India H.E. Pt. Maniedeo Persad, Lord Karan Bilimoria CBE DL, Dr Sam Pitroda, Lord Bill Lall and a number of Chief Ministers, Secretaries of the Ministries, NRIs and Captains of the Indian Business World will address the various sessions. To know more click here Company Sources December 26 Horizon-An Indian Real Estate Expo 2007 Horizon, an Indian Real Estate Expo is one of the very premium exhibitions of the United States of America, will showcase some outstanding creations by Indian Real Estate Developers for the rest of the world. The best of Indian Americans would visit the exhibition to see and buy the marvels created by todayâs visionary developers. The Horizon Expo will be held in San Jose California from 10th -11th March 07, in Virginia from 14th â" 15th March 07 and in Manhattan, New York from 17th â" 18th March 07. For further details, click here Company Sources December 26 'Homes Of India', Indian Property Exhibition In Bahrain From 1st -3rd Febâ07 'Homes Of India', an Indian property exhibition will be organised in Bahrain at the 'Bahrain International Exhibition Centre' on the 1st, 2nd & 3rd of Febâ 07. Studioline Conventions, a partnership arm with Michael Vasanth & Shakeel Sheriff are the organizers of this exhibition. In this exhibition, some of the worldâs reputed builders will showcase some of the current & forthcoming residential & commercial projects with relevant documents and govt clearances. Hence, this will be an excellent platform for the expatriate Indian community to identify their investment needs. For further information, click here Company Sources December 26 India Property Show In London From 23rd-25th Feb 07 âIndia Property Showâ, a real estate exhibition to showcase the leading and wide-range of Residential, Commercial, Holiday Homes and Industrial property, will be held in London. This show will provide an exceptional opportunity to thousands of Indians living in UK for purchasing and making property investments. Also, âThe Trade Fairâ will offer an excellent platform to Developers and Builders for promoting concept marketing and brand positioning. For more information click here Company Sources December 26 The Kolkata Hotel Industry In The Midst Of Boom Big ticket projects are planned for Kolkata, but none fall in budget category. The hotel industry in Kolkata is in the midst of a boom. A slew of hotels will add 1,000 rooms to the existing numbers in the next two years an InterContinental in Rajarhat plus a Marriot in the vicinity, with a Hilton and another luxury development by Emaar-MGF coming up on the Eastern Metropolitan Bypass, not to speak of the 224 rooms at the renovated Great Eastern Hotel. If none of these big-ticket projects fall in the budget category, itâs because all hoteliers have a single point grouse high real-estate prices. Realtors, however, do not agree that the price of land is high in Kolkata. The only brand of new-generation budget hotels to begin operation in Kolkata soon is the 100-room Fortune Kolkata. Fortune Park Hotels is also said to be in negotiations for managing The Loudon (formerly Hotel Rutt Deen). The other top-drawer project is the 150-room in Rajarhat. Also in the pipeline: a 64-room! on AJC Bose Road, another heritage hotel on Camac Street, and a 100-room budget hotel from the Peerless group in Rajarhat. At the 105-room, The Kenilworth, occupancy ranges between 80-100 pct, while ARRs have gone up 40-45 pct to touch Rs 5,000, says Mr R S Singh, vice-president. At The Peerless Inn, resident manager Mr Tarun Maity, reports an increase in ARRs by 10-25 pct. Business Standard New Delhi Edition December 21 Property Equality Between Daughters & Sons Indeed, slowly but surely, the uniquely Indian taboo where a girl was labelled as paraya dhan and denied a share in her parents' wealth and assets simply because she would marry and move away, is being broken. Lawyers and financial planners point out two factors which determine issues related to succession in India, namely law and culture. Traditional Indian culture has yet to welcome female inheritors into the fold with open arms in the same manner that Indian law has. A gradual inclination is building up within broadminded communities to bequeath property equally between daughters and sons, though the nays outnumber the ayes. It does not matter whether her family belongs to urban or rural India, or whether it earns a living from agriculture or private enterprise. Professional nuclear families with an average of two children are known to follow a more equitable pattern of distribution. Easy transfer and proper management of assets is cited as the reason. The daughter-in-law! comes up against a unique set of hurdles, especially if she is widowed young. Her deceased husband's family fears what will happen to the assets she is bequeathed should she remarry, and perhaps have more children. In cases where the head of the family leaves the question unanswered and dies without drawing a will, the personal laws of the community come into play. The Times Of India New Delhi Edition December 22, 2006 Sub-registrars Clueless Over Land Conversion Certificates How do you identify a fake land conversion order from the original? For that matter, where does one find a land conversion certificate for a property more than 50 years old? No answers. Similarly, even sub-registrars are confused since they donât have any clarifications on these issues. Result: Properties without land conversion revenue sites situated on agricultural lands which are not converted for non-agricultural purposes will not be taken up for registration. This means even properties in BMP limits need a land conversion certificate for registration. The Ordinance issued by the parliamentary affairs and legislation department, has introduced action against land encroachers and officials involved in murky land dealings. Since sub-registrars also come under the ambit of this Ordinance, they have stopped registering documents without clear titles. Stamps and registration department officials said that sub-registrars have given a list of issues seeking government clarifi! cation. They have sought for co-ordination between their office and that of the DC which does land conversion; a list of converted lands should be sent to the jurisdictional sub-registrar to verify the documents when presented for registration; a list of land acquisition with survey numbers and a list of lands granted to SC/STs. The Times of India New Delhi Edition December 20 MARG Forays Into Service Apt Complex MARG Constructions plans to tap the fast growing service apartment market. It is developing a 185-unit service apartment complex on Chennaiâs IT corridor. The company has tied up with Oakwood Asia Pacific, a Singapore-headquartered division of the US-based Oakwood Worldwide, a leading global player in the serviced apartment segment, for managing the serviced units. The company also proposed to launch two residential projects, offering close to 1,000 apartments, including a 700-apartment residential township over an extent of 18 acres at Alathur village on the IT Corridor. Mr GRK Reddy, MD, MARG Constructions said the company has got the momentum after Deutsche Bank invested around $12.5 mn in the companyâs convertible bonds in June this year. Meanwhile, the company has received in-principle approvals for two multi-product SEZs near Mahabalipuram, over 55 km south off Chennai. The SEZs are to come up over 300 acres and 312 acres and will house automotive and light enginee! ring units, besides outsourced services of financial, educational and healthcare segments. The six lakh sq ft Riverside Mall, set to come up at Karapakkam, is expected to be ready in 18 months. The company, which has bagged the Karaikal port project, has also floated a JV, Signa Infrastructure India with Hudco for undertaking large-scale infrastructure projects under the public private partnership route. While MARG will hold 74pct, Hudco will hold the rest 26pct. The Hindu Business Line New Delhi Edition December 21, 2006 Century Group Plans High-end Apts For Bengalooru The countryâs realty magnet, Bengalooru, is all set to usher in the ultimate in luxury lifestyles. City-based developer Century Group has lined up plans to develop high-end apartments, estimated to cost Rs 12/15 cr per unit. âThe plush apartments will boast the best-of-breed in each category Poggenpohl kitchen solutions, Dornbracht bath fittings and Gaggenau home appliances,â said Mr Ravindra Pai, Director, Century Group. In phase I, the 8 apartment complex consisting of four bedrooms each will come up at Bengalooruâs tony address of Palace Orchard, followed by another property in Koramangala. âThe first such property, spread across 20,000 sq ft, will be developed at a cost of Rs 60 cr excluding real estate. Earlier this year, Mantri Developersâ Mantri Altius, a 15-apartment complex, with each unit costing about Rs 6 cr was sold out within six months. But this time, the stakes are much higher and the swish set of Bengalooru residents are ready for more. With glob! al real estate behemoths showing an interest in the IT hub and local realty giants competing with each other, the number of ultra-premium apartments are tipped to multiply in the next one year. The Century Group has primarily been involved in the acquisition, development and sale of land for the last three decades. It currently has over 5 mn sq ft of land under development with various builders in Bengalooru and the groupâs total land holding stands at a staggering 3,000 acres. Spanish-style villas (in the Rs 2-4 cr segment) and a high-end township on the Outer Ring Road (Rs 80 lakh to Rs 1.5 cr bracket). Other big-ticket plans for Bengalooru include Emaar-MGFâs world-class township. The Economic Times New Delhi Edition December 21, 2006 State Govt Regularizes Revenue Layout Houses Those who have built a house in a revenue layout in CMC limits without a sanctioned building plan or khata certificate, can now breathe easy. The State government has decided to regularise all such houses while implementing its Bruhat Bengalooru Mahanagara Palike (BBMP) plan. However, the owners will have to pay a one-time fee of the amount that is yet to be worked out towards betterment charges, which is due since last three years. But the government has not yet decided whether to penalise those who have blatantly deviated the building bye-law or not. According to an estimate, nearly a lakh houses have come up in seven CMCs: Mahadevapura, Bommanahalli, Rajarajeshwarinagar, K R Puram, Dasarahalli, Yelahanka and Byatarayanapura and one TMC: Kengeri in the last three years. Why have these developers not taken any sanction from local bodies? âThese urban local bodies have stopped collecting betterment charges from property owners since 2003 (after an infamous CMC scam unearth! ed by the Karnataka Lokayukta). As a cumulative effect of this, neither was the khata issued nor the building plan sanctioned,â a CMC commissioner said. However, khatas were issued and sanction given to those houses that came up in approved revenue layouts and layouts that were formed by a development authority. Deccan Herald Online Edition December 20 SEZs Around Towns May Prevent Realty Scams The government may stall proposals for special economic zones (SEZs) within 50 kms of major towns and cities. The move will prevent speculation in land prices leading to real estate scams. According to government officials, a proposal to this effect is likely to be cleared by an empowered group of ministers next month. The officials said most of the 403 SEZs approved by the government were being set up in and around major cities and towns. This had pushed land prices to unrealistic levels, they added. The government is also likely to amend the Central Land Acquisition Act to include specific provisions on fair compensation and rehabilitation package for those displaced while setting up SEZs. The government is also open to converting the whole area of an SEZ into a processing area, instead of the present 35pct. Land acquired for SEZs accounts for 2-11pct of the total land acquired for all purposes. The Financial Express New Delhi Edition December 21, 2006 Condor Launches Second Project In Kerala The Dubai-based Condor group has launched its second luxury apartment project in Kerala. Styled `Condor Daffodils', the project will feature 90 apartments at Kuravankonam in Thiruvananthapuram. It will have comforts such as Spa, Jacuzzi, massage room, swimming pool, shuttle badminton court, roof-top party area and a conference hall, apart from other facilities. Another residential project of Condor is also in progress in the city. The group is planning a modern shopping mall and two more residential complexes in Thiruvananthapuram. The Hindu Business Line New Delhi Edition December 23 Negative Returns Despite Growth Patterns Despite the 45pct growth registered by the sensex during 2006, as many as 192 stocks in the BSE 500 have generated negative returns during the year. Another 150 stocks have recorded a positive growth of less than 45pct and only 145 scrips (29pct) have outperformed the sensex with a return of more than 45pct. On a sectoral basis, the real estate sector hogged the limelight. Unitech is the star performer in the pack. Its stock has offered a whopping return of 2833pct in a little less than a year, adjusted for bonus and stock splits. Shree Precoated Steel, Vertex Spinning, Anant Raj Industries and Indiabulls, all of which have got huge land banks, generated returns ranging from 200pct to 550pct since the start of 2006. Apart from real estate, stocks from some of the sectors that have recently caught fancy include retail, print media, non-conventional energy and logistics. All of them have also performed well during the year. This is truly reflected from the fact that stocks of ! Suzlon Energy, Container Corporation, Allcargo Global, Shoppersâ Stop, Provogue, Deccan Chronicle, HT Media and few others have all managed to outshine the BSE sensex in terms of returns since start of January. The Economics Times New Delhi Edition December 20 Mastek To Invest Rs 250 cr In Offshore Development Centre Mumbai-based software services company Mastek plans to invest Rs 200 cr - Rs 250 cr over the next five years to set up a 5000 seat offshore development centre in Mahindra City near Chennai, the companyâs first ODC outside Maharashtra. Once completed the facility would be its largest development centre, senior officials said. Mr K Nagarajan, Head, India Business Unit, Mastek said that the construction of the facility would start in mid January, as would the companyâs operations from the city in a rented premises with about 100 people. Mr Jamshed Jussawalla, CFO, Mastek said in the first phase to be ready in a year the centre would accommodate 1000 people. "We will be investing about Rs 50 cr in the first phase," he said. The ODC would come up in 15.5 acres of land that Mastek had acquired at Mahindra City in 2005. 7Mastek presently employs over 3200 people in India at its centres in Mumbai and Pune. In the quarter ended September 30, 2006, Mastek reported an income of Rs ! 198.9 cr against Rs 153.1 crs during same period last year and Rs. 193.4 crs in April-June 2006. www.indiatimes.com December 19 Realty Sector To Become Biggest Wealth Creator The Indian real estate sector is set to become one of the biggest wealth creators in the country. Strong GDP growth, the increasing impact of software and IT enabled services, the growth of organised retail, the continued inflows of foreign direct investment and portfolio investment are all spurring its growth. The market capitalisation of real estate companies in India, currently around $16-18 bn (Rs 72,000 - 81,000 cr), is expected to rise ten-fold in the next ten years, according to Edelweiss Securities, crossing $160 bn. By end 2007 itself, once companies like giant realtors like DLF, Omaxe and others are listed, the market cap may be over $50 bn. Given the tremendous demand for housing, coupled with an improving regulatory landscape, robust economic growth, modernising urban development methods, the realty sector will become extremely attractive over the next 4-5 years, says another report prepared by SSKI India. Residential housing forms an extraordinary 91 pct of the ! overall real estate activities in India says the Edelweiss report. Currently residential stocks in India stand at 36 bn sq ft at an average household size of 1,100 sq ft. Conservative estimates claim residential stock will increase by another 11 bn sq ft in the next five years, an annual growth rate of 2.3 bn sq ft. Besides the residential three more segments: commercial, retail, and special economic zone (SEZ) will drive real estate boom, feel analysts. Hindustan Times New Delhi Edition December 19 APIL Bags Rs 20,000 cr Worth Hi-tech City Project Near Greater Noida Real estate firm Ansal Properties and Infrastructure Ltd (APIL) said that a company led consortium has been awarded a 2,504 acre hi-tech city project near Greater Noida by the Uttar Pradesh government, entailing an investment of over Rs 20,000 cr. An MoU to this effect has recently been signed between UP government and the consortium where APIL is the main partner, the company said. "The value of the project is expected to be over Rs 20,000 cr," it said. While part of the project cost would be funded from the recently concluded Qualified Institutional Placement (QIP) of APIL amounting to Rs 682 cr and balance from internal accruals, loans and sale revenues, the release said. The hi-tech city, slated to be one of the largest real estate development projects in NCR, would accommodate a population of over 30,000 people. The proposed hi-tech city would have an 18 holes golf course besides five star hotels, serviced apartments, a convention centre and an exhibition hall. The comp! any would also develop golf apartments and golf villas abutting the golf course. The Economic Times New Delhi Edition December 22, 2006 Builders Under Income Tax Scanner The real estate sector, which has been making millions in profits over the past few years, has now come under the scanner of the income tax department. âThe builders who have not paid a single penny as corporate tax while floating schemes every other day have come under our notice,â a senior official said. Parsvnath Builders deposited Rs 50.8 cr as advance tax till December, as against Rs 9.5 cr during the corresponding period last fiscal. The Omaxe Group, which had not deposited any advance tax by December last fiscal, has this time deposited Rs 30 cr. The biggest surprise, sources said, is the increase in advance tax deposited by DLF Universal from Rs 3 cr last year to Rs 132 cr this fiscal. Rising profits in real estate, coupled with the efforts of the IT department, have led to an increase in advance tax deposits by builders, a senior official said. The Eros Group and GTM Builders have also deposited Rs 40 cr and Rs 20 cr respectively after investigations were condu! cted by IT sleuths, the sources said. Having requisitioned 450 vehicles to conduct field surveys for six months, the income tax department has collected over Rs 1,000 cr as additional tax deposits, Central Board of Direct Taxes spokesperson Mr AK Sinha said. Of the 25 top corporate tax paying companies, eight are from the banking sector, which includes public sector major State Bank of India, Punjab National Bank, and Bank of Baroda besides private sector banks like ICICI, Standard Chartered, HSBC, HDFC and Citibank. www.dnaindia.com December 25
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