Chennai Real Estate Prices Update

The southern Metro of India Chennai has been witnessing huge MNC inflows lately, Thanks to IT Minister Dayanidhi Maran.

We went to Chennai the Real Estate scenario and here are our findings.

• In Shollinganallur the rates are between rs 5.75 to Rs 6.25 crores / hectare.
• Since 2004, price of land in industrial estates of Guindy and Ambattur have escalated between 50% - 60%
• Current land prices in Guindy are in the range Rs 18,000 - Rs 22,500 / sq mt
• Current Land prices in Ambattur are between Rs 3,700 - Rs 4,500 / sq mt
• We found that the old part of GeorgeTown is now transforming into Commercial Hub
• Old Mahabalipuram Road has attracted most of the Real Estate activity after being inducted in the IT corridor 3 years ago.
• The main factors contributing to the growth of Real Estate is the presence of IT/ITeS/BPO services and Chennai has doubled the value of software exports in last 3 years.

Residential Real Estate Update in Chennai:

• Prices of Premium properties have zoomed over 200-300% in central and south chennai over the past 12-18 months [It's ridiculous]
• Apartments on Kasturi Ranga Road in upmarket Alwarpet were sold at Rs 12,000 / sft
• High end flats in upmarket area od Rutland Gate, Nungambakkam were sold at Rs 4.25 crores.
• Average residential flats in RA Puram are fetching Rs 8,000 / sft which was quoted at Rs 2,500 just 18 months ago.
• Prices on Harrington Road have shot up from Rs 6,000 to Rs 7,000 sft from Rs 3,000 / sft a year ago
• Prices in Pycrofts Garden Road are hovering around Rs 7,000 / sft
• Poes Garden, high end residential apartments are now quoted at Rs 12,000 to Rs 15,000 / sft
  

We feel the prices are insane and are abnormally high. IMHO, you should wait for sometime before you enter the mad rush.

Tags: Chennai Real Estate, Chennai Realty

Nitesh Estates raises $55 Million

Bangalore / Bengalooru based Nitesh Estates has raised $ 55 Million by diluting 25% stake in the company. Och-Ziff, UK based hedge fund manager is the investor.

Nitesh Estate is promoted by Nitesh Shetty and is developing several projects including a 5 star hotel in Bangalore at an estimated cost of Rs 500 crores. The developer is also building a SEZ in Mangalore and several residential projects.

Earlier, JP Morgan invested $60 million in Lodha Bellissimo in Mumbai.

Tags: India Real Estate, Bangalore Real Estate, Private Equity Real Estate, Private Equity India

Bangalore SEZ & Real Estate Update

Bangalore - Garden City to most Polluted and Dirty city in India has attracted a textile SEZ and four large housing projects from Prestige Constructions.

Bangalore based Gokaldas Exports Ltd is setting up an apparels SEZ near Kanakapura 44 kms from Bangalore. Gokaldas has acquired 400 acres of land for the same. Kanakpura is DeveGowda family constituency and the family owns large chunks of land between Bangalore and Kanakapura. CNBC TV 18 had also reported that most of the real estate development in Bangalore is now taking place on Kanakapura road, mainly because of the DeveGowda factor.

Prestige Group has lined up four mega projects in Sarjapura and Whitefield areas. Presitge Ozone is located in Whitefield and will be spread on 46 acres of land constructing 290 villas. Prestige Palms is another housing project located in Whitfield. Prestige Tech Park is a commercial IT park spread on 16 acre plot and will house JP Morgan, Nokia, Airtel and others will be built on Sarjapura Road. Prestige Featherlite will be located in Whitefield and will house BPO companies.

Thanks Prestige and Gokaldas for helping get Bangalore more dirty and polluted.

Tags: Bangalore Real Estate, Prestige Group, SEZ India, Realty India

India Real Estate Sector Update.

The Insane and abnormal Real Estate boom in India is expected to last for a decade said Kamlesh Chanda Chakrbarty, CMD, Indian Bank.

Those who enter real estate with their own money will never lose the money inspite of changing business cycles. [Buy High and Hold when the market crashes, example folks who bought property in Bangalore in 1996 could sell in profits only in 2005]

The Indian real estate sector is currently valued at $12 Billion and growing at a rate of 30%.

Tags: India Realty, India Real Estate Boom, Land Bank,
Real Estate

JP Morgan Invests $60 Million in Lodha Bellissimo

J P Morgan and other foreign funds are chasing the Indian real estate space as if their is no tomorrow.

Lodha Builders, Mumbai based realty company has just informed us that J P Morgan will invest $60 Million [Rs 275 crores] in their upcoming project on erstwhile Apollo Mills Land in Mahalakshmi.

Lodha Bellissimo is a premium residential complex coming up in Mahalkshmi. J P Morgan said,
"We have invested significant time and effort in understanding the local market and market players and have found Lodha's worthy of investment".

Yesterday, Uday Kotak, CMD of Kotak Mahindra Bank has said that Real Estate Prices in Mumbai made no sense to him and is looking for a revolution in real estate market where the middle class could easily afford to BUY.

Tags: Realty India, REIT, Mumbai Real Estate, Premium Apartments Mumbai

RBI cut backs lending to Realty and Retail in India

Atlast the banks have taken the cue from RBI's credit policy and have slowed down their lending to Real Estate and Retail sectors. The banks have been advised to rebalance their folio such that their lending to small and medium enterprises and farm sector takes off.

Sucheta Dalal has warned that the realty bubble can spoil the growing economy of India. Sucheta warns that FIIs are illegally investing heavy sums of money into NBFCs and companies registered in Mauritius that have significant interest in the Indian Real Estate sector.

We have been telling from day one that India needs manufacturing base to grow and not unrealistic Real Estate or Lands Sharks to build SEZs . The Economic Times has an article which says what we have said 6 months ago and they further add that 70% of Chinese exports are by Small and Medium sized enterprises. However, in India, the small and medium enterprises have no scope from the Government as the commerce ministry is busy clearing SEZ proposals of Land Sharks instead of focusing on developing industries that can export.

Commerce ministry is not copying the Chinese model in its entirety but just the SEZs fined tuned to suit Rich Indians which can be dangerous to the Indian economy.

Tags: SEZ India, Realty India, REIT, Land Bank

Supreme Court notice on Reliance SEZ Land Acquistion

Earlier we had reported about Reliance SEZ being dragged to Haryana High Court. The Supreme Court of India today issued notices to the centarl government seeking an explanation as to why fertile agricultural lands were acquired on behalf of industrialists for SEZs without proper compensation to farmers.

Kuldeep Bishnoi in a public interest litigation has urged the court to quash all the acquisitions that had already taken place and direct that the land be returned to the respective farmers. Bishnoi has also sought to declare the SEZ act as unconstitutional.

SEZ Act in India is the largest land bank scam and should be scrapped with immediate effect. Every big industrial house including the house of Tatas are involved in SEZ controversy.

Tags: SEZ India, Reliance SEZ, Land Bank Scam, Real Estate Scam

Tata Motors Singur SEZ in Big Problem

Tata Motors Ltd, Singur SEZ which will build Ratan Tata's small car priced at Rs 100,000 is in big trouble. Looks like the state government is going an extra mile to protect Tatas.

State Chief Minister, Budadeb Bhatacharya forcibly acquired land. Yes, farmeres are given the checks and pushd out of their lands using Police force. [The constitution of India, lists that the State Police should protect the fundamental rights of Indian, but they are doing the opposite] Leader of Opposition, Mamta Banerjee tried to meet the farmers when her saree was torn and taken out of the Singur area.

The Congress and BJP two other political parties are now opposing TATA SEZ at Singur and are all set to go on a strike from today.

Enough of this Land Grab, why can't the Tata's go and start it at some remote area ? Why Singur ?

Tags: SEZ India, Tata Motors, Realty India