Barasat, The New Residential Investment Attraction In Kolkata

Located in the northern fringe of Kolkata, Barasat is transforming into a well-established residential area. Situated on the Jessore Road, Barasat promises good location with easy access to civic amenities.

Barasat, which was earlier less developed, is growing at a fast rate and is giving other areas such as Rajarhat and New Town, a run for their money. Experts in the industry say that Barasat is becoming a sought-after option as it is affordable as compared to other areas and is well-connected to business hubs.

The area was less crowded earlier but now it is developing by leaps and bounds. All facilities like hospitals, schools and shopping complexes are in the vicinity and the area is also affordable as compared to other areas.

Barasat is just 15 minutes away from the Netaji Subhash Chandra International Airport and the railway station, Barasat Junction, is also at a distance of about 10 minutes. It is also favourable for people as it is closer to NH-34 towards north Bengal and is also near the Salt Lake.

In multi-storey apartments along this stretch, the major features are ample parking space and lush greens. The apartments are serviced with facilities such as swimming pools, courtyards, gyms, maintenance, security, etc.
Presently, the sale values in the area are in the range of Rs 1600 and Rs 2,600 per square ft.

There are less of 1BHK apartments whereas the 2BHK configuration with an area of 450-800 sq ft is more in demand. The 3BHK apartments are constructed in 1100 sq ft area. A 2BHK unit is available at rental values of approximately Rs 18, 000 per month while for 3BHK it is about Rs 27,000.
As per the experts, the proposed metro station is expected to bump up the rental values.

Barasat is a desirable location for property buyers and approximately half the buyers are end-users. A 30 per cent return on investment, accounts for the other half of buyers being investors.

Major developers that include Fortune Group, Sanjeevani Developers, Vedic Group etc, who are coming up with residential projects in Barasat attracting end-users, especially from North Bengal itself.

Source: aawas.in

40,000 Low Cost Flats to be Built for Urban Poor: Delhi Government

Delhi Government today approved a long-pending proposal to construct around 40,000 low cost flats in the city for distribution among people belonging to economically weaker sections.

The proposal was given a go ahead at a meeting of Delhi Urban Shelter Improvement Board (DUSIB) chaired by Chief Minister Sheila Dikshit.

The flats will be constructed at Savda Ghevra and Bhalswa area of Jahangirpuri. A 100 acre plot is lying vacant at Savda Ghevra while the size of the land at Bhalswa is around 102 acre.

“Around 40,000 flats for urban poor would be developed at these two sites,” said a senior DUSIB official. The DUSIB is the nodal agency for implementing the slum relocation policy.

The meeting also approved four more projects for construction of around 6,200 flats under Rajiv Awas Yojana and in-situ re-development scheme for Jhugi Jhopri clusters in various areas.

It also decided to distribute 14,000 low-cost flats to slum dwellers by September as their constructions have already been completed.

The flats were built by Delhi State Industrial Infrastructure Development Corporation ( DSIIDC) in Bawana, Narela and Bhorgah area with financial assistance from the Union Urban Development Ministry under the JNNURM scheme.

The meeting also gave its nod for construction of a working women hostel at Jhilmil Colony in East Delhi at an estimated cost of Rs 3.74 crore.

“The government is keen to accelerate the pace of allotment of already constructed flats at the earliest. The board has chalked out a schedule to organise camps for different Jhugi Jhopri clusters to determine eligibility of the beneficiaries,” said Dikshit.

In order to make the camps successful, the residents in selected clusters are being informed and educated well-in advance so that they can come prepared with necessary documents.

Officials said around 48,000 flats are under-construction at various sites.

A proposal to construct a commercial-cum-residential complex at Phool Mandi near Town Hall in Central Delhi was also discussed. The complex will come over a plot of around 3 acre which is under possession of the DUSIB.

Source: Real Estate India News

Godrej Properties buys back Red Fort

Realty firm Godrej Properties on Wednesday said the company has bought back private equity firm Red Fort Capital’s 49 per cent stake in a subsidiary that is developing an IT Park in Kolkata, for an undisclosed amount.

In 2008, Red Fort had picked up 49 per cent stake in the IT Park project ‘Godrej Genesis.’

“In terms of the agreement with Red Fort India Real Estate Babur (Red Fort) for Project Godrej Genesis at Kolkata, the company has given exit to Red Fort by purchasing its 49 per cent stake in the equity share capital of its subsidiary Godrej Developers Pvt Ltd (GDPL),” Godrej Properties said in a filing to the BSE.

GDPL has become wholly-owned subsidiary of the company with effect from December 4, 2013, it said, but did not disclose the amount it paid to Red Fort for the stake.

In July, Godrej had bought back HDFC Asset Management Company Ltd’s nearly 50 per cent stake each in the realty firm’s two projects at Chennai and Chandigarh.

HDFC PMS (Portfolio Management Services) had invested about Rs. 100 crore to pick up stakes in Godrej Properties two subsidiaries, which are developing realty projects in Chennai and Chandigarh.

Godrej Properties has presence in 12 cities across India with about 90 million sq ft of potential developable area.

The company reported 48 per cent rise in net profit during first half of this fiscal at Rs. 73.7 crore, while total income grew by 21 per cent to Rs. 564.6 crore during the period under review.

PE firm Red Fort Capital focuses on Indian real estate and has invested in several projects. Besides Godrej, it has made investment in projects of Parsvnath Developers, The 3C Company and Lotus Green among others.

Source: The Hindu

Kolkata developers eye other cities on slowdown blues

Limited growth opportunities in Kolkata are forcing city-based developers to explore other markets. Chennai is high on the preference list, followed by non-metros such as Ahmedabad, Raipur and Bhubaneshwar.

Delay in receiving clearances, long turnaround time (for projects) and other inherent risks are some reasons for venturing outside the State.

At least five major developers have firmed up plans for entry in Chennai, while Raipur, Bhubaneshwar and Ahmedabad are the other alternatives.

Harsh Patodia’s Unimark Group, Nandu Belani-controlled Belani Housing Development, Sushil Mohta’s Merlin Group, Pradeep Chopra’s PS Group and the Space Group are planning to enter Chennai.

Merlin is also firming up plans for entry in Raipur and Ahmedabad.

“The signs of a slowdown in Kolkata are imminent. Over the last one year there has not been any upward price movement despite increase in demand. Commercial space off-take has gone down too,” Nandu Belani of Belani Housing Development Ltd told Business Line.

Belani has over the last one year set up an office in Chennai followed by zeroing in on a plot. He plans to develop a residential project. Merlin too is eyeing a residential project in Chennai.

According to Harsh Patodia, President (CREDAI Bengal), apart from expanding operations, the need to de risk investments i.e. having more offerings outside a single city is also a reason. The best bet would be to enter new markets that have similar dynamics as Kolkata.

Chennai, which has moderate presence of private equity players and investors, relatively stable price movement and upcoming infrastructure, along with demand for apartments, offers the best alternative.

Other places such as Ahmedabad have a faster turnaround time and Raipur and Bhubaneswar have fewer local developers. As such these States have come up as logical alternatives.

LOCAL TIE-UPS

“In the southern States, people identify with local developers. Many of us are entering into tie-ups with a local player in the region,” Patodia said.

Patodia’s Unimark Group is in final discussions with a prospective local partner for its Chennai entry. Kolkata’s Space Group too has entered into tie up with Chennai’s Olympia Group for joint development.

SLOWDOWN

Market sources, meanwhile, indicate that over the last one year, growth in Kolkata has been stunted. A prime indicator is the price (of apartments).

Till April, the average per sq ft price in the city stood between Rs 3,000 and Rs 5,000, a stable price that has neither moved up or down.

“Developers have been taking a hit on their margins. They are unsure of unsold stock if they opt for new projects. Price is unlikely to move up with the uncertainty in the market,” a developer said.

Delay in obtaining clearances and non-withdrawal of the Urban Land Ceiling Act leading to non-availability of land; followed by increase in registration fees and property valuation; have adversely impacted developers. Large projects are on the back-burner.

Source: Business Line

Residential in, commercial out for real estate bigwigs

Originally published in the Financial Express on 24th October, 2011

Lack of funds, customer aversion to striking advance lease deals and a slowdown in demand for office space have combined to push real estate developers into building more residential apartments than commercial spaces.

“In the residential market, you can pre-sell the space and customer advances can almost fully finance the actual construction ad agiainst the commercial market,” says Pirojsha Godrej, executive director, Godrej Properties.
Godrej Properties (GPL) has put on hold its commercial estate development in Tier-II cities and, instead is now focusing more on residential apartments. According to them the commercial real estate segment turns out to be capital intensive without good returns and residential real estate, on the is more viable, given the way the selling of space takes place in such projects.
“Residential properties definitely give higher returns as, in some of the projects, bookings start even before the ground breaking happens, which is not the case in the commercial space,” says Samantak Das, national head (research), research & advisory services, Knight Frank (India).
Lenders funds developers who have a good track record and are involved in projects that have demand. Consultants say lender risk is linked to muted rentals.”The key risks for lenders to commercial real estate are that rents are not likely to improve for the next 18-24 months,” says Anshul Jain, chief executive, real estate consulting firm DTZ India. “The demand has also been lacklustre in 2011-2012 compared to 2010-2011.”
In Kolkata, Godrej is developing two large information technology parks Godrej Waterside and Godrej Genesis. “We have locked up huge amounts of capital in these projects, but the returns have not been proportionate,” says Pirojsha Godrej. The company, which was earlier planning to develop both commercial and residential properties in Ahmedabad, will now build only residential apartments there.
Many developers agree with Godrej.
As the current economic scenario is gloomy, developers are deferring commercial office space ventures, says Samantak Das of Knight Frank (India). “There is a lot of supply in the market, which can still be absorbed,” he says.
In CY 2010, anywhere between 33 million and 35 million sqft of commercial space was sold; in 2011, it is likely to be 35 million sqft, says DTZ’s Jain. “In 2012, the demand offtake is likely to taper off to 31-32 million sqft, provided the world does not burst because, if that happens, the situation could be akin to the the one in 2009 when the offtake slipped to 23 million sqft from the 40 million sqft in 2007”.
Source: capitalcityscape.over-blog.com