Home Loan Borrowers in India

Rank State No. of borrowers 1 Maharashtra 27,60,377 2 Karnataka 16,83,107 3 Tamil Nadu 14,86,868 4 Andhra Pradesh 13,02,152 5 Delhi 12,31,622 6 Kerala 10,35,382 7 Uttar Pradesh 8,81,274 8 West Bengal 6,29,339 9 Gujarat 4,90,497 10 Punjab 4,63,469 11 Rajasthan 4,34,770 12 Madhya Pradesh 4,04,324 13 Orissa 3,77,916 14 Haryana 3,09,349 15 Bihar 1,76,577 16 Chandigarh 1,59,384 17 Assam 1,11,550 18 Uttaranchal 96,836 19 Chattisgarh 84,507 20 Himachal Pradesh 78,185 21 Jharkhand 73,685 22 Jammu & Kashmir 51,459 23 Goa 48,709 24 Meghalaya 45,933 25 Pondicherry 21,908 26 Sikkim 17,974 27 Mizoram 16,959 28 Manipur 11,357 29 Tripura 10,445

Bangalore Residential Property Prices

Our team conducted a survey with various builders and real estate developers and here are the average residential prices in different parts of Dirty & Polluted Bangalore / Bengalooru.

South Bangalore / Bengalooru :
HSR Layout - Rs 2,500 - 3,000 / sft
J P Nagar, 6th Phase Rs 4,500 / sft
Sarjapur Outer Ring Road Rs 2,600 - Rs 3,500 / sft
Kanakapura Road Rs2,400 - Rs 2,600 / sft
Bannerghatta Road Rs 4,000 / sft

North Bangalore / Bengalooru:
Hebbal Outer Ring Road - Rs 2,650 - Rs 3,000 / sft
Yelahanka - Rs 2,500 - Rs 2,600 / sft
Banswadi Rs 2,650 / sft
Dodaballapur Road RS 2,400 /sft
HRBR Layout Rs 2,400 - RS 2,600 /sft
Tumkur Road - Rs 1,900 - Rs 2,300 / sft
Nelamangala - Rs 2,600 / sft

East Bangalore / Bengalooru:
Marathalli Rs 2,600 - Rs 2,800 / sft
Brookefields - Rs 3,000 - RS 5,000 for Independent Houses
Hoodi - Rs 2,600 - Rs 3,000 / sft
Old Madras Road - Rs 2,500 / sft
Malleshwaram - Rs 4,800 / sft
Whitefield Rs 2,600 - Rs 3,200 / sft

$10 Billion Foreign Money into Indian Realty

More than 35 big ticket foreign investors have already poured Billions of dollars into Indian realty. Insiders in the Indian Real Estate market estimate upto $10 Billion inflow into various real estate projects in the first 6 months of 2007.

• Signature Group planning to launch several real estate funds for investments in UAE and India, totalling over $650 Million
• 20 More funds are seeking entry into India
• Foreign investors interest is at an all time high with 80% of the investors being first time investors.
• FIIs from Israel, Malaysia, UK, and Singapore are aggressively chasing the space.

Cushamn & Wakefield in its latest research report have said that they expect upto $10 billion deals in the first half of 2007.

Mangalore Real Estate Update

After Mysore, one of our friends has update from the Mangalore Residential Real Estate space.

The prices have risen sharply between 2004 and 2006 in some parts as much as 200%. Residential apartment prices are as follows,

Belmatta and Falnir command over Rs2,000 / sft
Gandhinagar - Rs 1,900 / sft
Kadri - Rs 1,700 and 1,900 / sft
Pandeshwara - Rs 1,600 / sft
Upcoming areas of Jeppu and Bejai command Rs 1,500 to Rs 1,700 / sft

Insiders from the office of Chief Minister of Karnataka have said that a proposal is being prepared to be presented to Govt. of Singapore to develop IT parks at Mangalore, Mysore and Belgaum on the lines of Bangalore IT park.

Mysore Residential Property Prices

Mysore, earlier the place for South Indian Maharaja today houses the world's largest IT training center managed by Infosys Technologies Ltd.

With its proximity to Bangalore /Bengalooru and the 4 lane expressway nearing completion except for few hurdles from Devegowda and family, Mysore / Mysoouru is all set to get a place in Asian Silicon cities.

We decided to check the residential real estate prices in Mysore / Mysooru and here are our findings.

Jalyakashmipuram Rs 2,500 / sft
Vani Villas Puram - Rs 2,400 / sft
Yadhagiri - Rs 2,300 / sft
Siddharatha Layout - Rs 2,300 / sft
Kuvempu Nagar - Rs 2,250 / sft
Chamrajapuram Rs 2,200 to 2,450/ sft

Tags: Mysore Real Estate, Mysore Apartments, Mysore Housing, Mysooru

Realty Bubble in India - Financiers Cautious

The unrealistic India Real Estate boom has stolen sleep of Housing Finance company executives as they are more averse to defaulters after the prices begun to decline and borrowing stagnant.

Rajiv Sabrawal of ICICI Bank said,

There has been a slowdown in the past 4-6 Months. The rise in Real Estate prices has directly hit the lending activity of the bank as well.

Deepak Parekh, Chairman HDFC said,

At Whitefield in Bangalore, Prices have fallen by 15-20%. Our borrowers are buying homes in far flung areas such as Dombivili and Ambernath.

We were the first to report about the crash in Bangalore's housing market which Deepak Parkeh is telling now.

Tags: Housing Finance, Housing Bubble in India, Real Estate India, ICICI HDFC

Nitesh Estates Copying UB City ?

Bangalore / Bengalooru based Nitesh Estates is understood to have partnered with Citigroup realty and secured funding of $100 Million for it's ambitious 250 room hotel and commercial space for high end retailers. The project is understood to be coming up on Residency Road in Bangalore. Insiders have leaked that the upcoming hotel is to be managed by Ritz Carlton.

Looks like Nitesh Shetty, founder of Nitesh Estate is directly copying the model of building Hotel cum High End commercial retail outlet from none other than a neighbor living 4 Kms away, Vijay Mallya. Mallyas UB city houses a 5 star hotel and a High End Retail outlet in one of the towers.


In Dec-2006, Nitesh Estates raised $55 Million from JP Morgan.

Via[BS]

Tags: Citigroup, Bangalore Real Estate, India Property, Nitesh Estates

Reliance Industries bypassing Maharashtra Government

Mukesh Ambani's long wait over land acquisition for his dream SEZs is over. With the Maharashtra government taking forever to pass the land acquisition bill and Mur*ers of innocent farmers for farm land acquistion in Communist ruled Bengal, RIL has started acquiring the land directly from the farmers at a premium to the prevailing market price. Reminds me of the late Shri. Dhirubhai Ambani who had this golden touch to win hearts of people where his project was involved.

However, it is not very clear how long the acquisition will continue as Mukesh Ambani will definitely benefit from the passage of Land acquisition bill - Modus Operandi, Government will enact a legislation to seize lands from farmers at Government rates, which are a third to prevailing market rates and lease them to industrialists thus avoiding the stamp duty.

Anand Jain, Chief, Reliance SEZ who directly reports to Mukesh Ambani said,

Size of the project does matter. Success of SEZs depends on economy of scale. And international competitive edge and viability depends on economy of scale. This competitive edge comes from directly linked basic infrastructures, such as own residential townships, expressways, electricity generating source, airport and seaport. But the first and foremost, the government should give a free hand to Reliance in implementing the project. And we will do it and show

Via[ET]

Tags: SEZ India, Reliance SEZ, Indian Industry, Emerging Economy

Reliance Industries on Land Buying Spree

Reliance Industries Limited which is promoting the Reliance Haryana SEZ is on a Land buying spree. RIL is buying 50-60 acres of farm land from farmers everyday at a price of Rs 20 lakhs per acre.

According to insiders, the company has already acquired 8,000 acres at a cost of Rs 1,600 crores. Current SEZ discussions in the ministry plan to cap the land that can be bought from farmers at 10,000 acres. However, Reliance will exceed that figure easily and may become an exception to the clause when it becomes a law.

Other SEZ developers in North India are unhappy about Reliance mopping up vast tracts of land.

Tags: India Land Bank, Reliance SEZ, India Realty, Haryana Real Estate

SEZ Bengal - Communist leaders a threat to India

The SEZ scam in India has turned violent. Farmers trying to save their own farm land were beaten to death by CPM activists and 7 lives lost and many injured. The worst thing about these communist (CPM) leaders is that are they are the biggest hypocrites in India. They proclaim themselves as friends of common men and the poor. They first came out against the SEZ policy saying it was a LAND BANK SCAM. But in the past few weeks, all their actions have been into greedy land grabbing exercises.

International readers of this blog maybe wondering why is this the biggest real estate scam ?
Under the SEZ policy, the state government will forcibly kick you out of the land you own, cultivate and make living out of it. They then hand it over to powerful industrialists who are greedy land sharks. With a weak legal system prevailing in the world's largest democracy, the poor are always at the receiving end.

If the industrialists are interested in developing the Indian industry, why can't they goto remote areas and start manufacturing units? Why can't the government setup infrastructure just like the Chinese did ?

No I am not against Bengal being industrialized but don't be fuc*ing morons by taking lives of people for industrialization.

Tags: SEZ India, Bengal SEZ, Communist, Real Estate Scam

DLF's $3 Billion IPO Draft Prospectus Filed

The controversial IPO of DLF India is finally set to happen. We were the first to expose DLF on the web and later SEBI and Ministry of Commerce took up the issue which was resolved just in Dec-06. From the fresh draft prospectus, some of the key things to be taken into consideration are as follows.

• Issue size is now pegged at Rs 13,500 crores. [Earlier filing 10,500 crores]
• Number of shares offered via Book Building - 17.5 crore shares. [Earlier offering 20.2 crore shares]
• Price band Rs 700 to Rs 850.
• ENAM and J M Morgan Stanley pulled out of the issue due to HIGHER pricing.
  
• From the above we can infer that DLF promoters are offering lesser number of shares and raising higher amount. The shady part of this is DLF this time is not pulling in international property evaluator Cushman & Wakefield to value their land bank.
  
• DLF has a land bank of 10,255 acres. [Earlier 4,256 acres] DLF still owes Rs 5,537 crores to be paid to various land owners.
  
• DLF will venture into Hotel industry in JV with Hilton Hotels. Hilton will hold 24% stake in the venture
• Post-IPO promoters stake will be reduced to 87.5%.
• DLFs secured loan size has also doubled.

Tags:DLF , Realty India, India Properties , IPO India