Unitech Ltd, the country’s third largest real estate developer by market value, has reported 97.79 per cent dip in consolidated net profit at Rs 2.26 crore for the quarter ended March 31, 2012 on lower sales. The company had posted a net profit of Rs 102.5 crore in the same period last year, Unitech said in a statement.

Total income from operations also slipped to Rs 716.07 crore in the January-March quarter of the 2011-12 fiscal, from Rs 1,054.26 crore last year.

For the entire fiscal, Unitech’s net profit dropped to Rs 248.30 crore from Rs 567.66 crore in 2010-11.

Total income from operations also declined to Rs 2,446.58 crore from Rs 3,186.87 crore in the previous year.

Announcing the results, Unitech MD Ajay Chandra said, “Financial year 2011-12 was a very challenging year, particularly in terms of availability as well as cost of funding for real estate projects. This has resulted not only in an increase in financing costs for the company but also adversely affected the construction activity during the year.”

“There has been a gradual improvement in availability of funding in the recent months and the outlook on the interest rates is also benign. We expect the year 2012-13 to be significantly better,” he said.

The company achieved sales bookings of 7.19 million sq ft valued at Rs 3,808 crore in FY’12.

source: http://www.realtyplusmag.com/rpnewsletter/fullstory.asp?news_id=20318&cat_id=1

Wave Infratech, a decade old real estate arm of the Wave Group, has lined up four mega real estate projects christened Wave City Centre and Wave One (Noida), Wave City (Indirapuram, Ghaziabad), and Wave Estate (Mohali), respectively.

Speaking exclusively to Realty Plus about the new projects, R K Jain, managing director, Wave Infratech, said: “Wave Infratech inherits equity from the mother brand to promote a vast array of verticals, namely residential, commercial and retail. With projects like Wave One, Wave 1st Silver Tower, Wave Estate and smart city concepts like Wave City and Wave City Centre, we are attempting to break new ground. The company also has to its credit a host of malls (Wave Malls) and multiplexes (Wave Cinemas), running across the northern belt of the country.”

Spread over an area of 152 acres, Wave City Centre, located at Sector 32 and 25A, Noida, will serve as one of the largest commercial and residential hubs in the region. “Besides offering a product-mix comprising serviced residences, multi-use studios/1BHK, premium offices, high street shop condominiums, luxury hotels, family entertainment centres, indoor theme, water and snow park, the project would also house the next generation of intercity transport and an unmatched security system that would ensure a secure and safe environment to its occupants,” adds Jain.

The 4,500-acres Wave City is a self-sufficient smart city designed by IBM, just 30 minutes from Delhi and 10 minutes from Indirapuram on NH-24. Planned and designed by renowned city planners Bentel Associates from South Africa, this mega city has lush landscaped greens, wide roads, bus rapid transit (BRT) and garbage control system.

Wave One is a 41-storey commercial tower in the heart of the commercial hub of Noida, Sector 18. With a built-up area of over 2 million sq ft, it offers retail and office spaces along with a five screen multiplex, food court and parking for more than 2000 cars. Designed by the world renowned BBG-BBGM, this iconic structure houses the most premium offices in sector 18.

Wave Estate, situated in the heart of Mohali, Sector 85 & 99, is an epitome of luxury living and provides options in the form of exclusive villas, plots, group housing and floors. Spread across around 300-acres, the project has Mohali Cricket Stadium, Chandigarh International Airport and Knowledge Park housing Indian School of Business in close proximity.

When asked about the demand of value homes in Delhi-NCR market, Jain informs, “The demand for value homes has always been on a high in Delhi/NCR. With such rising demand and various options available for financing, developing value homes has become a top priority with us. Wave Infratech has launched Wave City, which is catering to the demands of various segments of the society. The aspirational and value housing segment has been taken by a storm with the recent introduction of floors on subvention scheme in Wave City.”

Elaborating about the prospects and challenges before Indian realty sector, Jain avers, “One of the major challenges lies in establishing credibility and trust factor in the minds of the consumer. The same can be achieved by formulating concrete land and regulatory policies by the Government in conjunction with the private developers. Hence, we believe a real estate regulator is essential to safeguard the best interest of both investors and developers.”

source:http://www.realtyplusmag.com/rpnewsletter/fullstory.asp?news_id=20316&cat_id=1

Ansal SEZ Projects has approached the government seeking to surrender its special economic zone in Gurgaon after the imposition of minimum alternate tax and global economic uncertainties. The request for denotification of the SEZ will be placed before the Board of Approval (BoA), which is scheduled to meet on May 22.

The BoA, headed by commerce secretary Rahul Khullar, will also consider the requests of developers like Uttam Galva Steels, Mumbai SEZ Ltd and Mahindra and Mahindra which have sought more time to execute their projects.

“The developer (Ansal) has requested for denotification of the (IT/ITeS) SEZ due to economic meltdown, lack of demand and imposition of minimum alternate tax (MAT) and dividend distribution tax (DDT),” the BoA agenda said.

Another 10 developers have asked for more time for their projects, it said.

Since December, 2008 to March 15 this year, the Board has approved 46 cases of de-notification.

Earlier this month, the Parliamentary Standing Committee on Commerce has recommended the government to check such a trend of denotification which defeats the objective of higher industrialisation and exports.

During the 2011-12 fiscal, exports from SEZs grew by 15 per cent year-on-year to Rs 3.6 lakh crore.

The Committee also asked the Commerce Department to tighten the norms so that only genuine cases can get the approval.

source: http://www.realtyplusmag.com/rpnewsletter/Fullstory_Newsletter.asp?news_id=20293&cat_id=1

Godrej Properties, the realty arm of Godrej Group, plans to continue its focus on residential space, a top company official said.

“Though there is negative sentiment among buyers at present, the demand for houses will continue to grow, which is a huge opportunity for developers like us. We will continue to remain very much focused on the residential space,” Godrej Properties (GPL) managing director and chief executive Pirojsha Godrej said.

Of the 10 deals that the company signed last fiscal, only one was in the commercial space, at Bandra Kurla Complex.

“Going forward, the entirety of our business will be focused on residential space,” he said, adding, “It is not that we feel the commercial space will not do well, but given our current portfolio, we think we have a significant exposure to this segment.”

“Financing for residential projects is much easier than commercial projects. In residential, construction can be financed by customer advances. That is the key for scaling growth,” said Godrej.

GPL plans to launch 15 projects this fiscal, he said, adding that these will primarily be residential projects.

source: http://www.realtyplusmag.com/rpnewsletter/Fullstory_Newsletter.asp?news_id=20290&cat_id=1

Realty major Paramount Group claims to have sold out 90 per cent of the inventory of its Floraville project, based on e-homes technology. Speaking to Realty Plus, Ashwani Prakash, executive director, Paramount Group said: “We define Paramount Floraville as luxurious and futuristic homes, as the project is based on the theme of e-homes and has all kinds of energy-efficient features.”

He informed that luxurious and futuristic features of this project have made it a hot buy among home-seekers, adding, “Even though, it was launched only about a year and a half ago, we have successfully sold out 90 per cent of the total project inventory.”

Being constructed at Sector 137, Expressway, Noida, the project Floraville has an inbuilt facility of controlling almost every electrical/electronic appliance fitted in the homes from any faraway places with the help of ONT (Optical Network Terminal). Every apartment has been fitted with an ONT box. The ONT converts fibre-optic light signals to copper/electric signals.

With the help of this optical fibre technology, while sitting in the office also, the residents can monitor their entire home. The company has also provided home-owners with the facility to upgrade intercom to video intercom and use single remote for all the electrical equipment like television, refrigerator, AC, lights, washing machines, among others.

Spread over an area of 12 acres, Floraville comprises 16 towers with 18 & 21 floors with options of 2, 2+1 study, 3 and 3+1 study BHK apartments. According to the company, a total of 1521 dwelling units are being constructed under the project, surrounded by lush greenery on three sides. The area of these dwelling units, priced between Rs 57 lakh to Rs 95 lakh, ranges from 1045 sq ft to 1685 sq ft.

The company, which is also a member of Indian Green Building Council, has incorporated different kinds of green features into this project. To name a few, the project contains solar based street lighting and heat & sound resistant UPVC windows.

Floraville provides grand entrance lobby in each tower, 24×7 surveillance camera, modern club, swimming pool, spa, cafeteria, play school, shopping centre, health care facilities, battery operated cars for the visitors, and more.

Prakash disclosed, “Floraville, slated to be delivered in one year from now, has seen a steep price appreciation during a brief period. Launched at the rate of about Rs 3,000 per sq ft, the project currently holds the price tag of Rs 5,500 per sq ft.’

source: http://www.realtyplusmag.com/rpnewsletter/Fullstory_Newsletter.asp?news_id=20287&cat_id=1

NCR-based leading developer Gulshan Homz has launched its much awaited premium residential project christened ‘Gulshan IKEBANA’, located at sector-143, Noida Expressway.

Spread over an area of approx. 12.5 acres, the project will consist of G+19 towers, offering 3BHK luxury apartments in 1340, 1495, 1695 and 1995 sq ft sizes, priced at Rs 4150 per sq ft, plus additional charges. A total of 1500 residential apartments are expected to be made in phases.

The company plans to invest Rs 900 crore into the project that would be arranged from internal accruals and public investments into the project. It will take four year to complete construction. Total 300 units are already sold in the project pre-launch.

IKEBANA, located on Noida Expressway at a feasible distance from DND flyover and FNG, boasts of state-of-the-art amenities from indoor & outdoor games, kids lounge, guest+ lounge, party hall, swimming pool, intercom connectivity, club-lounge, landscaped gardens, 3-tier security, 100 per cent power backup, etc.

Speaking about the project, Gulshan Nagpal, MD, Gulshan Homz shared, “IKEBANA, meaning beautiful arrangement of flowers, has everything that a normal person with a taste of good-living need today. True to its name, it is surrounded by beautiful green surrounding and artistically done-up landscapes. Timely delivery, quality and class are the USP of the project.”

Deepak Kapoor, director, Gulshan Homz said, “Passion for excellence has gone into the planning and designing of IKEBANA. With exclusivity and location, it would be appreciated by all buyers. Our motto is Length, Breadth, Height and Passion, we will deliver the project on these parameters.”

The company, Gulshan Homz, known for developing luxurious residential projects like the recent project Homes 121 and Vivante located in Noida, has been recently appreciated as ‘Emerging Developer of the Year- Residential’ by Realty Plus.

source: http://www.realtyplusmag.com/rpnewsletter/Fullstory_Newsletter.asp?news_id=20288&cat_id=1

Pune has been favoured destination amongst Real Estate PE funds since 2005 – the year FDI opened for real estate. Most of the funds are based out of Mumbai, which gives Pune obvious preference, as the city’s proximity allows these funds to track and monitor the market – and their investments – easily. Also, Pune is among the most rapidly growing cities in India after Mumbai, NCR and Bangalore.

The total flow of PE funds into Pune until December 2011 was approximately US$800 million. This consisted of both foreign and domestic monies through around 32 major transactions over the last five years. 2009 saw the lowest flow of private equity funds into the city, though Investors regained confidence in 2010 arrived. The renewed investor confidence resulted in a massive recovery of private equity deal closures in Pune

As expected, most of these funds have been invested in the residential property asset class. In fact, residential real estate has proved to be the most consistent and enduring magnet for private equity funds into Pune’s real estate sector. In comparison, investments into SEZs, industrial parks (STPIT) and mixed-use townships have primarily been seen only before mid-2008. From 2010 onwards, the interest in these formats as asset classes has been quite meagre.

Significantly, 61% of the total private equity investments that have been seen in Pune were done in projects located in East Pune. East Pune has the majority of the city’s IT industry developments such as Magarpatta Cyber City in Hadapsar, EON IT Park in Kharadi, CommerZone in Yerawada, Weikefield IT Park on Nagar Road, etc. These IT developments have had a major spin-off effect on the profile of these areas. The higher spending power and commensurate aspirations of the people working in these establishments has caused the arrival of massive malls and also generated a huge demand for quality residential projects. These projects are proving to be the major magnets for private equity investments into Pune’s real estate sector.

Breakup of PE investment between East & West Pune – Commercial, IT & Retail real estate

Housing demand is expected to remain subdued in short-to-medium term despite cut in key policy rates by RBI, global property consultant CBRE has said.

“While the recent rate cut by the RBI has helped generate positive sentiments in the market, stagnancy in demand will continue in the short to medium term unless there is an overall improvement in the economic scenario,” CBRE South Asia Chairman and Managing Director Anshuman Magazine said.
RBI had last month cut the repo and reverse repo rates by 50 basis points.

In its report ‘India Residential Market View – 2011′, CBRE said the housing market witnessed stagnant demand for most part of the last year.

NCR and Mumbai witnessed steady escalation in housing prices during the revival period from 2009 to first half of 2011 (as high as 40-50% in certain micro-markets), the latter half of the last year brought in stagnation in overall prices, the report found out.

“During 2011, we witnessed initial buoyancy in the real estate market as investor and developer sentiment improved, riding on the high residential demand wave,” Magazine noted.

However, he said, with repeated interest rate hikes, rising prices and prevailing economic conditions, the market saw a dip in sales towards the middle of the year.

This resulted in a supply pile-up in the key markets of NCR (National Capital Region), Mumbai and Bangalore, leading to capital values remaining flat across various micro-markets in these three leading hubs.

On the NCR market, the consultant said it witnessed considerable appreciation in capital values in the first half of 2011.

Most micro-markets in Gurgaon remained central to the residential demand curve for the NCR region, with both primary as well as secondary market witnessing significant activity. However, the growth in capital values slowed in the last few months of 2011.

The Noida market witnessed issues with land acquisition across key locations such as the Greater Noida Expressway and Noida Extension.

source:http://business-standard.com/india/news/housing-demand-to-remain-stagnant-till-economy-improves/164756/on

NEW DELHI: The residential market in India witnessed stagnant demand for most of 2011, after an initial spurt in the first few months of the year.

A recent report by Global Property Consultants CBRE South Asia, India Residential Market View – 2011 states that while the residential markets across NCR and Mumbai witnessed steady escalation in prices during the revival period from 2009 to first half of 2011 (as high as 40-50% in certain micro-markets), the latter half of the year brought in stagnation in overall prices.

Numerous repo-rate revisions by RBI, which led to upward revision of mortgage rates, tighter control on teaser rates earlier being offered by financial institutions to reduce EMI burden in the initial years of a loan tenure, and inflationary pressures impacted end user as well as investor sentiment by the end of 2011.

This coupled with supply pile-up lead to downward pressures on capital values across various micro-markets in these leading hubs. While the year 2012 started on a positive note with the central bank reducing repo rates by 50 basis points for the first time in several months (after increasing it 13 times in the last 2 years), the impact on demand rejuvenation might be limited.

“During 2011, we witnessed initial buoyancy in the real estate market as investor and developer sentiment improved, riding on the high residential demand wave. However with repeated interest rate hikes, rising prices and prevailing economic conditions, the market saw a dip in sales towards the middle of the year,” said Anshuman Magazine, Chairman & Managing Director, CBRE South Asia Pvt Ltd.

This led to a supply pile-up in the key markets of NCR (National Capital Region), Mumbai and Bangalore, leading to capital values remaining flat across various micro-markets in these three leading hubs.

“While the recent rate cut by the RBI has helped generate positive sentiments in the market, stagnancy in demand will continue in the short to medium term unless there is an overall improvement in the economic scenario,” Mr Magazine added The NCR market witnessed considerable appreciation in capital values in the first half of the year, with premium markets witnessing steady demand from expatriates, high net worth individuals (HNIs) and executives from multinationals and Indian companies.

source: http://economictimes.indiatimes.com/markets/real-estate/news-/demand-in-residential-market-to-remain-stagnant/articleshow/13092800.cms

Cognizant Technology Solutions has increased its real estate infrastructure expansion in India by nearly $200 million. The US-based company, which has large offshore presence in India, has revised its investment plan to a total of $700 million in real estate from 2011 through 2015. This is to expand its campuses in India by an additional 10.5 million square feet, reports Business Line.

This expanded programme includes expenditure on land acquisition, facilities construction and furnishings to build new company-owned IT development and delivery centres in regions primarily designated as Special Economic Zones in India, the report added.

In February 2011, the company announced $500 million of investment in its India infrastructure expansion through the end of 2014. However, at the beginning of calendar 2012, the company decided to expand its planning horizon for the India real estate programme to 2015 and beyond, a company spokesperson was quoted as saying in the report.

source: http://www.realtyplusmag.com/rpnewsletter/fullstory.asp?news_id=20267&cat_id=1