IISc Scientists burst Bangalore Real Estate Bubble

Researcher, Dr. Sitharam T G, at the Department of Civil Engineering at Indian Institute of Science today warned Bangaloreans of a possible earthquake due to rampant and irrational development of the cities high rise buildings on waterbodies. They further added that increasing population density and erratic traffic conditions could be contributing factors as well.

Areas in the silicon valley of Asia that are suscptible to earthquakes are Mathikere, Basaweshwarnagar, Hebbal , K R Puram, Vidhana Soudha, GSI, Bangalore Airport and Bellandur Tank. Three areas - Arkavathi River Valley, Koramangala and Hebbal have been identified as most vulnerable areas for earthquake.

Bangalore Real Estate ,
India Real Estate Bubble

Reliance ADAG gets approval for 2,500 acres SEZ

Reliance ADAG group today received land approvals of 2,500 acres from the Uttar Pradesh government. Reliance is planning to setup a multi product SEZ comprising of Reliance Infocomm, Reliance Energy and Reliance One World.

The proposed SEZ is coming up in NOIDA. Official sources denied that the government had been partial to R-ADAG. But we won't deny it :) Reliance Infocomm & Reliance One World are in the domestic services sector and why would they need an SEZ ? What are the going to EXPORT ? Duh! Its all about Land Bank :)

GGP to Invade Indian Commercial Real Estate

GGP - General Growth Properties, worlds second largest Real Estate Investment Trust is all set to invade the commercial real estate space in India. GGP's interests are mainly concentrated in - Shopping Malls.

My insiders tell me that GGP is in negotiations with Rahejas, owners of InOrbit Malls. However, Rahejas are denying all rumours. Why ? Keep guessing or shake hands with me ;-)

India SEZ ,
InOrbit Malls

Reliance ADAG to Invest $3 Billion in Chennai

Splinter Reliance group chairman Anil Dhirubhai Ambani met TamilNadu Chief Minister M.Karunanidhi and pledge to invest Rs12,000 crores in Chennai to setup multi product SEZ with a core of 1000 MW power project linked with desalination plant. The amount of water produced will meet 30 per cent of the current water shortage in city. Another proposal was to build at IT Park (with Rs 2000 crore investment), a world-class convention centre. World looks at Chennai as an IT destination. Union Ministers Dayanidhi Maran was also present during the meeting.

HDFC to Pump Rs3240 crores Foreign Money into Indian Real Estate

HDFC the pioneers in Housing Loans had setup HDFC Real Estate Fund in 2005 to cash in on the countrys booming real estate. The Mauritius-registered and HDFC-sponsored India Offshore Real Estate Investments has been allowed by the Cabinet Committee on Economic Affairs to invest $720 million (Rs 3,240 crore), raised overseas, in units issued by HDFC International Real Estate Fund (IREF). IREF would in turn invest in Indian companies.

No doubt HDFC is a professionally managed company. What is surprising is, inspite of the Indian government allowing retail Indian investors to invest in Real Estate Mutual Funds, HDFC has preferred Foreign Investors over Local Indian Investor. Why is HDFC not raising money from Indian Investors ?

Strict regulations on SEZ coming

You might be aware that I have been criticising and pointing out the loop holes in SEZ policy. Especially the HOTEL SEZ which some vested interest parties in Kerala were lobbying for. The government has finally realized and no more posh hotels, apartments, golf courses in SEZ areas. They will be just restricted to the bare necessity.

Under the restrictions, rampant resale of apartments will not be permitted within a zone. The curbs will depend in part on the location of a zone.

For instance, an infotech zone located in the suburbs of a city like Bangalore may not be allowed to set up a hotel. The logic behind the restriction, officials said, was that clients visiting a zone close to a city could use the latter’s amenities.

According to me, strictly 80% of the land allotted must be used for setting up NEW MANUFACTURING Units. Dhirubhai Ambani said, Create Wealth, don't be Greedy Land Grabbers son :-)

Citi rushes to cash in on Indian Real Estate Boom

After JP Morgan, their Gora Bhai, Citigroup Property Investors is investing in Pune based Real Estate company, Gera Developers. The entire project cost is estimated at around Rs550 crores.

OK. I am sure you are desperately searching for the place where this property development project is coming up. Kharadi in Pune :-) Its a high end project. 600 apartments + country club + hotel on a area of 2 Million SFT. Citigroup Properties has also set aside $360 Million for investments in India.

Kerala plans product specific SEZs

The State Industries Minister, Mr Elamaram Kareem, has said that the Government would set up three product-specific special economic zones in the State. They are for Textiles, Gems and Jewellery and Multi-Product SEZs. While the textile SEZ will come up at Kanjikode in Palakkad, the Gem and Jewellery zone will be established at nearby Kalamassery and the multi-products one in Kasargode.

According to the Minister, the State had so far received approval for six SEZs, including three product specific SEZs of Kinfra in the sectors of animation and gaming, electronics and food processing. Besides, the Union Commerce Ministry has approved three proposals for SEZs at Info Park in Kochi, Technopark in Thiruvananthapuram and a port-based SEZ at Kochi port, he added.

Mr P.H.Kurien, Secretary, Investment Promotion, said on the occasion that a leisure SEZ was under consideration, for which a report had been prepared by a consulting agency. What ??? Leisure SEZ ??? You mean you want to promote hospitality and tourism and want a tax break, free land, etc? God gimme a break!!! Trust me if the Ministry of Commerce approves something liek a leisure SEZ, then every Politican in India will have a leisure SEZ assocaited with him.

The SEZ policy of the Centre is going to play a crucial role in the next decade in the country in employment generation, increasing exports, investment, introduction of new technology and creation of world-class infrastructure. So Kindly use it for the right purpose.

SEZ in Kerala , Gem Jewellery