Bangalore Rentals Crash!!!

After the crash in Polluted Bangalore's property prices, it is now time for the rentals to head southwards.

The commercial rental for "A" grade property which stood at Rs 30 / SFT / Month has come down to Rs 20 / SFT / Month and "B" grade properties are even lower at Rs 17 / SFT / Month.

ITPL is also witnessing the slowdown. 6 Months ago they were selling commercial rental spaces for Rs 50 / SFT last week the highest rate was Rs 44 / SFT / Month and a broker involved in the deal said that they will settle down between RS 35 and Rs 40 / SFT in 3 months.

Manisha Grover, Director, Jones Land LaSallee said,

The interest in ITPL and Whitefield is lower these days because Connectivity is a major issue for those who have to commute to and from Whitefield. IT firms are wiling to pay a premium to move to locations with easy accessibility.

Ambani - Kothari pick up Chennai Property

Mukesh Ambani's brother in law, the Kothari family has picked up Boat Club Property in Chennai for a new land record price of Rs 175 crore taking the price per SFT to a record level of Rs 17,000. Boat Club is the upper crest residential area of Chennai and till now no commercial construction has taken place in the area.

The 43 ground property belonged to IDBI and was on sale by an e-auction. Kothari's outbid the Bengalooru based Prestige Constructions and Chennai based Sanmar group in the final round. International realty firm, Jones Lang Lasalle was the broker for the deal.

Since November 2005, Boat Club area has witnessed a constant rise in land prices. In Nov-2005, HSBC auction fetched Rs 14,800 / sft. Later in June-2006, the prices on the Boat Club Road were Rs 15,400 / sft when CB Rrichard Ellis auctioned a property beloning to the TVS group.

Here is a recent Survey on Chennai's Real Estate prices.

Reliance Industries to Convey by Sea for SEZ

Mukesh Ambani's Reliance Maha Mumbai SEZ will use Arabian Sea as the preferred means of conveyance for workers to bypass the busy roads of Mumbai and take the project live in record time. RIL is is expected to place up to $50-million order for a fleet of big-sized commuter boats for ferrying its employees to the SEZ, which is about 50 km away from the metropolis.

RIL Sources Said,

You take more time to reach Navi Mumbai than Pune. So till all road and rail links are developed between Mumbai and Navi Mumbai, we are looking at water transportation

Reliance is developing 14,000 hectare SEZ covering Uran Taluk, Pen and Panvel. This includes the smaller SEZ spread across 4,000 hectare in Panvel, which is currently under way. When completed, the entire SEZ play is expected to employ up to 2 million people.

India's New Real Estate Barons - 2007

Last year we were the first one to write an exclusive story about the India's Richest Land Lords. Today we have another story covering the young and new land barons of India. They all are young and ambitious to build something unique in India. They are also Multi-Millionaires.

Rohtas Goel, is the Chairman and Managing Director of Omaxe Ltd and is worth Rs 540 crore. Omaxe is a premier Real Estate developer in Northern India. Rohtas is merely 43 and is self made man when it comes to Real Estate. After graduating in Civil Engineering, Rohtas disagreed to join the family trading business and went into constructions. Omaxe has completed 120 projects. Omaxe is now spreading wings into Amritsar, Sonepat, Ludhiana, Rohtak, Jaipur, Ajmer and Agra. Goel has recently started construction on his dream projects, first of its kind in India,
Wedding Mall - One-stop shop for wedding related shopping and
House2Home Mall - Will sell everything that's needed to setup a Home.


Sarang Wadhawan is the Managing Director of Rs 422 crore HDIL. Unlike Goel, Sarang is concentrating on building homes for the common man. Sarang is a 30 year old grad from Clark University.

HDIL has completed 20 Million sft of slum redevelopment and rehabilitation just like Akruti Nirman. Apart from slum redevelopment and infrastructure projects, HDIL is venturing into building a 2 Million SFT commercial hub and a 1 Million SFT retail mall. He is also looking to venture into Tier-2 and Tier-3 cities now.


33 year old Shravan Gupta is the Manging Director of the ambitious Emmar-MGF Realty Ventures in India. He is diversifying from his family business of leasing and hire purchase by shaking hands with Dubai based Real Estate company, Emmar group. Emmar group is building the tallest tower in the world in Dubai, Burj and have 12 SEZ approvals in India. Their first project - luxury residential, has kicked off in Mohali and is spread on a 26 acre plot.

Emmar MGF is also investing $300 Million to build Budget Hotels in India - Formule 1 with 10,000 rooms by 2010. They are also planning to build 10-15 luxury hotels in India.


Ravi Purvankara is the MD of Bangalore / Bengalooru based Purvankara Projects and hails from an upper middle class family. Ravi always wanted to be an entrepreneur . Ravi has already completed 24 residential projects and 1 commercial project. Currently Purvankara is developing 12 residential projects and 1 10 Million SFT commercial project. The company has a land bank of 69 Million SFT. Purvankara has filed Draft Red Herring prospectus for an IPO and plans to acquire another 76 Million SFT of land in Bangalore and Chennai. Purvankar also wants to go overseas for realty development - Colombo, Sri Lanka.

Tags: India Real Estate, India Realty, Omaxe Purvankara,
HDIL Emmar MGF

RBI cautious about Real Estate Lending

RBI which was strongly opposing the flawed SEZ policy in India had raised interest rates for the Real Estate Sector. RBI has also asked Banks to do higher provisions for their exposure to Real Estate loans. Greedy property developers are passing the loan burden on to consumers. However, with banks raising interest rates on home loans as well, Real Estate Property developers may have been trapped.

Observing the recent trend in realty stocks in India, it makes me wonder if a larger correction has begun. This shakeout will last longer and weak players will be eliminated. If you are planning to BUY a house, just hold with your cash for 3 more months and you will get it 20% cheaper :-)