Premium localities sell well in Delhi, Chennai

A weekly snapshot of some big-ticket city deals.

Delhi-NCR
An apartment admeasuring 3,700 sqft located in Malcha Marg was leased out for a monthly rental value of Rs 3,75,000. The rental values in this location range from Rs 2,75,000 4,25,000 per month and this apartment is well within this range and has seen an appreciation of around 12% over the previous year due to restricted supply and high demand, especially from expatriate community.

Malcha Marg is one of the citys most sought-after residential locations, due to its strategic location being equidistant from the established CBD and new business district of Gurgaon. Additionally,the location, due to excellent town planning,offers congestionfree traffic movement.

Chennai
An independent house located at Rambagh, Besant Nagar, was taken on lease by a major corporate. The house admeasuring around 5,000 sqft is located in the prime residential boulevard of the city. The monthly rental of Rs 3,00,000 per month is moderately higher than the prevalent rental for high-end residential units in the area, due to the fact that its location is equidistant from the central business district (CBD) of the city as well as from other emerging business locations. The area, by virtue of being an established residential location, also has good social infrastructure, including retail and entertainment, education and healthcare.

Pune
A three-bedroom apartment unit, admeasuring 1,441 sqft was sold in Chinchwad for a total cost of Rs 49,05,871. The per square foot value of this property is around Rs 3,400 per sq ft, which is in line with the current prevalent values in the location. This mid-ranged apartment complex is located in the suburban location of Pune, which is currently going through a transformation, with many apartment complexes and gated development being planned in the location. The area has been gaining importance due to its convenient location and good access to various office and commercial locations across the city.

Hyderabad
A residential apartment admeasuring 3,170 sq ft was purchased in an under-construction project in Madhapur, Western Hyderabad,at a capital value of Rs 4,250 per sq ft. The property,being built by a prominent national developer,houses apartments ranging from 2,200 sqft to 4,375 sqft in the configuration of three and five-bedroom units. The apartment is located in Madhapur,a part of Mindspace IT Park and adjacent to Westin Mindspace Hotel,in the Western part of Hyderabad. This area has seen a growth in demand for residential units owing to the fact that it is a prominent office location. The location has, due to a steady increase in demand, seen a growth of around 6% in capital values over the past three months. Being located in close proximity to work places, this premium project is expected to garner significant interest from end users. Source: MagicBricks

Centre eyes strategic partner for Maytas Prop

ET Bureau, Delhi

NEW DELHI: Minister for corporate affairs Salman Khurshid on Thurday said that the government is looking at the possibility of inducting a strategic partner in Maytas Properties, the company promoted by the kins of B Ramalinga Raju, founder of the former Satyam Computer Services. 

Asked whether the Union wants to find a strategic buyer for the unlisted Maytas Properties, as it did in the case of Satyam, Mr Khurshid said: “For all practical reasoning, that (strategic sale) is something that would work out... but they (board members) have to decide.” Following the admission of accounting fraud in Satyam Computer Services by Raju last year, the government appointed its own nominees on the twin companies — Maytas Infra and Maytas Properties — promoted by Raju’s sons.

Former president of the ICAI, Ved Jain, was appointed as government member on board of Maytas Properties. He was later elevated as the company’s chairman. 

“Ved Jain (chairman of Maytas Properties) is working out all permutation and combination, and we are trying to give him all the help required... We have very limited option. Since we have started the process, we want to bring it to a satisfactory end,” Mr Khurshid said. Several NRIs who booked flats in projects promoted by Maytas Properties have been asking the government to expedite rehabilitation of the company. 

The company had raised Rs 650 crore from customers for the Rs 1,100-crore Hill County project near Hyderabad. Maytas Properties reportedly has a land bank of about 6,000 acre.

Maytas Properties may go to strategic investor: Khurshid

18 Mar 2010, 1903 hrs IST, PTI 
NEW DELHI: Corporate Affairs Minister Salman Khurshid today said the government is looking at the possibilities of inducting a strategic buyer 
for Maytas Properties, the company promoted by the kins of disgraced Satyam founder B Ramalinga Raju.


"For all practical reasoning, obviously that (strategic sale) is something that would work out... but they (board members) have to decide," Khurshid said when asked whether efforts were on to find a strategic buyer for the troubled company.


"Ved Jain (Chairman of Maytas Properties) is working out all permutation and combinations, and we are trying to give him all help required... We have very limited option since we have started the process we want to bring it to a satisfactory end," the Minister said.


Following the admission of accounting fraud in Satyam Computer Services by Raju last year, the government appointed its own nominees on the twin companies -- Maytas Infra and Maytas Properties -- promoted by Raju's sons.


Ved Jain, the then President of the Institute of Chartered Accountants of India, was appointed Chairman of the company in March 2009 and was give the task to rehabilitate Maytas Properties, a company with interest in real estate in and around Hyderabad.


Several Non-Resident Indians who booked flats in projects promoted by Maytas Properties have been asking the government to expedite rehabilitation of the company.


The company had raised Rs 650 crore from customers for the Rs 1,100-crore Hill County project near Hyderabad. Maytas Properties reportedly has a land bank of about 6,000 acres.

Maytas Properties and Maytas Infra were the two companies which Satyam had tried to purchase in December 2008 but the deal was aborted following objections by shareholders. Source: ET

Not many takers for APHB's much-hyped housing scheme

Koride Mahesh, TNN, Mar 14, 2010, 04.10am IST;
HYDERABAD: The much-hyped Andhra Pradesh Housing Board (APHB) venture-2 at Kukatpally has received lukewarm response from people. Slump in the real estate sector and price tag of flats (single and double bedroom) seem to have cast their spell on the venture. On the other hand, private firms are offering flats at a price less than the board’s rates.

Though the board planned toconstruct 1,500 flats for low income group (LIG) families, only about 460 applicants have paid 10 per cent of the flat cost and expressed their willingness to pay the remaining amount. Now, the officials have decided to wait till the end of March and go ahead with construction of flats whose owners have paid
10 per cent advance.

APHB has proposed to construct two bedroom flats (580 square feet) and single bedroom flats (460 sft) in over eight acres of land at venture-2 in Kukatpally Housing Board (KPHB) phase-IV. While the cost of a 2-bedroom flat is about Rs 8.5 lakh, a single bedroom flat has been pegged at Rs 6.75 lakh, which works to about Rs 1,500 per sft.

The venture notification was issued in 2005 and over 1,000 applications were received from citizens. However, APHB did not take up the project as the developer did not come forward saying the rates were not viable for them. The board kept quiet for some time due to recession and slow down in real estate activity.

After several suggestions from people and builders, the board increased the plinth area of the double bedroom flat from 400 sft to 580 sft and single bedroom one to 460 sft from the proposed 300 sft.

In October last, the board had called for Request for Proposal from developer for construction of 756 two bedroom and 756 single bedroom flats under G+9 floors scheme, including development of amenities and infrastructure facilities at the site. Bids were finalised a month ago.

Though the APHB managed to overcome the hurdle, the board is now worried over poor response from people. Since January 2010, intimation letters were being sent to the applicants,but some were returned undeliveredand some did not show interest to pay the money.

Sources said private builders were offering flats at the rate of Rs 1,000 to Rs 1,200 per sft in that area, but APHB had pegged the price of its flats at Rs 1,500 per sft, that too as tentative cost.

“Some private builders are offering ready-to-occupy flats at low price, while our project will be completed only
in June 2011. But APHB assures quality of construction with all facilitiesand amenities,” an executive engineer of the board said.

Board officials said another 400 applicants have responded to intimation letters and sought some time to pay 10 per cent of the proposed cost of the flat. They would be given time till March 31, he added. Source: TOI

Residential market to lead realty recovery in 2010: CRISIL Research

A recent 10-city CRISIL Research report on the real estate market indicates that demand in the residential market is expected to turn positive in 2010 owing to improvement in affordability, steady economic growth and greater liquidity. However a decline in the currently over-priced capital values of all the three real estate segments - residential, commercial and retail - will persist through 2009. Further the commercial and retail markets will continue to witness erosion in lease rentals through the next two years.

The CRISIL Research City Real(i)ty Report provides comprehensive information and analysis of more than 400 areas across 88 micro markets in 10 cities - Ahmedabad, Bengaluru, Chandigarh, Chennai, Hyderabad, Kochi, Kolkata, Mumbai-MMR, NCR and Pune.

Mr. Sudhir Nair, Head, CRISIL Research says, “Accelerated growth of Indian economy, recovery of global
economy, improved liquidity and expected fall in interest rates are key factors that will signal demand revival in the residential segment. This segment is likely to see a much faster revival due to strong underlying demand for housing and supply coming at attractive price points.”

Sudhir further adds, “Demand in the commercial and retail segment is likely to remain under stress for the next two years owing to excess supply and weak offtake.” The CRISIL Research City Real(i)ty report indicates that capital values for residential sector and lease rentals for commercial and retail properties have substantially corrected till March 2009 due to a slowdown in both the domestic and global economies, and also due to real estate becoming unaffordable. Cities such as Kochi, Chandigarh and Pune, which have greater investor presence as against end-users, witnessed a greater fall in capital values compared to other cities.

The situation is expected to continue through 2009 and 2010, particularly so for the commercial and retail segments. However CRISIL Research believes that demand for houses will improve in 2010, backed by lower home loan interest rates as well as better job security owing to higher growth in the economy. Hence, capital values are likely to stabilise in the first half of 2010, and increase during the second half of the year.
CRISIL Research feels that the pace of economic recovery and confidence revival will have an impact on
sentiments across all the real estate categories and will be an important variable to watch out for.

Hyderabad