Saturday, October 06, 2012

BUY Land Where Gandhi Family Buys for Maximum Appreciation

This Tip is for the HNI who wish to Speculate in the Real Estate Market. Uesterday, India Against Corruption members have unearthed the nexus between DLF and Robert vadra [Son in law of Sonia Gandhi]. Robert has amassed Rs 1,000 Cr of Real Estate which includes some Land Bank. So Real Estate Speculators can BUY Lands near Robert Vadra's and Get Rich Qucikly. Here is list of Land Parcels owned by Robert Vadra's Company,
  1. Land in Bikaner - Search Bikaner Sub-Registrar's Office and see where "North India IT Parks Pvt. Ltd." has bought 161 Acres of Land in the City and you can start gobbling the neighboring parcels
  2. Search Bikaner's Sub-Regisrrar office for Lands Owned by these companies Real Earth Estates Pvt. Ltd., Sky Light Realty Private Ltd., Sky Light Hospitality Private Ltd and bUY Land in the Vicinity for jackpot.
  3. Investment by Gandhi Family in Manesar - Sky Light Hospitality Private Ltd is the Official Land Owner
  4. Palwal - Sky Light Realty Private Ltd is the Holding company of Land for Gandhi Family
  5. BUY Land in Hassanpur in the vicinity where Real Earth Estates Pvt. Ltd has bought land
  6. BUY Land in Mewat (Haryana) wherever Real Earth Estates Pvt. Ltd is holding land
These are Speculative Investments in Nature and are meant for HNIs or Super Rich Individuals Only. Looks like Robert Vadra wanted to Develop an IT Park and a SEZ in Bikaner.

Friday, October 05, 2012

Bangalore - Mid-Size Apartments Rule the Roost

Ears on the Ground Survey indicate to us that that mid-ticket size products are best for the market and this is which has seen the most volume absorption. We could define mid ticket size units as those in the ticket size of Rs5-10m. This segment provides a good combination of investment-worthiness, rental yield and end-user demand. In terms of area, this means unit sizes of 1,800-2,500sft apartments and, in terms of rate, a range of Rs4,000-5,000 psft.

The buyer segment (10-year work experience in IT/ITES sector) has on an average household gross income of Rs1.2-Rs1.8m. This makes price in terms of the household income in the range of 4-5x, which is an affordable pricing bracket in our view.

Over the past couple of years, we have seen a slew of launches in the premium-housing segment with ticket size of Rs30m+, primarily focused in the new-emergent areas of North Bangalore. Observers believe that the market for luxury launches is weak and they have not seen good absorption.

The buyer base comprises primarily of IT professionals looking to invest surplus cash. At the other end of the spectrum is the Delhi-NCR market, which is entirely broker investor driven, dependent on bulk sales. The Mumbai market is between the two extremes. In the Bangalore market, developers do not bulk-sell to a committed broker-investor base. Rather, they depend upon branding and word-of-mouth from existing buyers to attract new buyers.

Bangalore has developers that are focusing on affordable housing (Purvankara Provident, Value Budget Housing Company) and they have started to offer viable products. However, their scalability and execution challenges are yet to be tested over the longer run.

Robust Sales for Sobha Developers

Management has targeted pre-sales of Rs20 bn and 3.75 mn sqft for FY13. The company has reported Rs10.1 bn (up 28% yoy) and 1.78 mn sqft of presales in the first half of the year, which is traditionally the weaker half. We believe Sobha has maintained its robust sales growth through periodic launches and entry into new markets. Sobha is poised to launch 6 mn sqft in the upcoming 4 quarters in several locations in Bangalore, Thrissur, Pune, and Mysore.

Average prices increased to Rs5,575/sqft in 2QFY13 from Rs5,196/sqft in 2QFY12, up 7%. However pricing declined 3% qoq due to increased sales in Thrissur (lower pricing), while sales in Gurgaon (higher pricing) were flattish qoq.

In 2QFY13, Sobha sold 0.59 mn sqft in Bangalore, 0.14 mn sqft in Gurgaon, 0.12 mn sqft in Thrissur, and 0.1 mn sqft combined in Chennai, Coimbatore, Mysore and Pune. Qoq growth of 13% was driven by strong growth in Thrissur (168% qoq) and Bangalore (14% qoq).