Tag: real estate property news in kolkata

Housing starts slow down in Chennai, Bangalore & Kolkata

Housing starts in large cities such as Kolkata, Chennai and Bangalore have slowed down, according to the Housing Start-Up Index, a new indicator of housing construction, released by the Reserve Bank of India and the Ministry of Housing and Urban Poverty Alleviation (MHUPA) on Monday. However, in cities such as Ahmedabad, Bhopal and Hubli, housing starts have increased.

This index, first of its kind in India, provides an indication of how many building permits were issued in a given period, and how much of them were started and when.

An increase in the number of housing starts, as the report accompanying the release describes, indicates improvement in demand and investment. This index is critical for both property developers and policy-makers. So far, about six countries such as the United States and Japan had developed such an index. In the last few years, the RBI and the MHUPA have been trying to develop one for the country. Though , methods for developing it were recommended way back in 2009, the pilot study was taken up only recently.

The pilot study of 27 cities, which focussed on building permits issued between 2007 and 2011, shows that most of the construction started in the same quarter as the building permission was granted. The delay in commencing house construction at the most stretched to a year. The new data confirm that increasingly more multiple housing units (MHUs) are being constructed. The bulk of the building permission given in 27 cities pertains to MHUs.

The southern region witnessed high house starts in 2009, but slowed down in 2011. But, the western region showed a high start in 2011. The overall reduction in the construction activity in the country coincides with the low GDP growth between 2009 and 2010.

The RBI will publish the housing starts index every three years based on the data collected by the National Buildings Organisation and the National Sample Survey Office.

The government plans to extend the study to 300 cities, and develop the house start index for each of them.

Source: thehindu.com

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

Real Estate Biggies To Compete For Prime Plot near Kolkata

A prime 5-acre plot on the edge of EM Bypass Expressway has caught fancy of Indian real estate giants. Soon, big names including DLF, Reliance Group, Emaar MGF, Indiabulls, Bengal Ambuja Realty, and Paharpur Cooling Towers will be seen competing for it. Kolkata Municipal Corporation (KMC) will put the project to auction. The location of the property is its biggest plus. It is located opposite the Science City Infotainment Complex. Also, it is at a stone throw distance from the ITC Sonar. KMC will offer it on a 99-year long term lease through an auction. Most probably, the land will be used for development of an exclusive commercial-***-residential complex. This region is buzzing with developing commercials and there is huge demand. To add to this, the plot is on the edge of a prime expressway that passes through fast flourishing New Kolkata on the eastern border of the city. 57 corporates have bought the request for proposal (RFP) document containing the terms and conditions! of the auction. The last date to buy the RFP was 5 October whereas the last date for submission of bids is October 15. Reportedly, KMC will use 50% of the proceedings from the auction to set up an art gallery in Rajarhat.
Source: mybangaloreproperty.com