Worried that property prices may cool down? With India tipped to become the most sought after real estate market among emerging economies, you may not really have to fasten your safety belts just yet. In fact, just 10 land deals in India over the past 12 months were valued at over a whopping Rs 15,000 cr. Evidence enough to prove that reports citing office rentals in Delhi and Mumbai being costlier than more developed real estate markets such as New York City, Dubai and Singapore, are not off the mark.
While realty giants such as DLF, Unitech and Hiranandani Developers were the obvious names that featured on the ‘mega deal’ list, Sunday stumbled upon some interesting trends. The list not only stands testimony to how India’s corporate bigwigs such as Reliance Industries and JSW have jumped into the realty bandwagon, but also marks the entry of hospitality major Leela Group into the Delhi market with a hefty tag of Rs 611 cr for a 3 acre plot! Although Delhi and Mumbai still held on to seven out of top 10 mega realty deals in the country, Hyderabad and Chennai too emerged as hotspots for big ticket transactions. Meanwhile in January this year, Essar Group acquired Peninsula Land’s Kurla commercial project for about Rs 1,200 crore. Recently, Delhi-based BPTP Developers hogged the limelight by outbidding realty biggies such as DLF and Omaxe to clinch a 95-acre commercial land in Noida for a record Rs 5006 cr. While opinions may have been mixed on the valuation of the deal, some completely disagree with the view that the deal is over-valued. “I don’t think it is overvalued in any way. The feasibility of such a transaction holds good as the demand for office space in India still remains huge and needs to be met,” feels Rohtas Goel, CMD, Omaxe.
However, if the BPTP deal is the costliest in terms of total valuation, it is the JSW deal that stands out as the most expensive at Rs 365.45 cr per acre. This was followed by hospitality major Leela Group’s Rs 203.6-cr per acre deal for a plot in the Capital. Another valuable deal was that of Wadhwa Builders who shelled out Rs 203.6 cr per acre for a commercial development in Bandra-Kurla Complex (BKC) in Mumbai.
RIL’s giant deal that amounts to Rs 121.5 cr per acre in BKC, will see construction of a multi-storeyed car park as well as a commercial complex. Says Manish Aggarwal, director, Land & Industrial, Cushman & Wakefield India, “Many real estate players like to start their flagship projects from prominent cities and this had led to large number of players eyeing some limited prime land parcels in metros. However, as the market matures, many of these players will look at creating large land banks which has a mix of prime and sub prime land parcels across tier II and tier III cities.”
With an acute shortage of land in metro cities and escalating land costs, it will not be long before other locations such as Hyderabad, Chennai, Bangalore, Coimbatore and Pune will grow as centres of major land deals in the near future.
Realty major Unitech hogged the limelight last year when it bagged a 1,750 acre plot near Vishakapatnam for Rs 3,328 cr. Bangalore-based Purvankara Developers and Nitesh Estates clinched major deals in Hyderabad and Chennai, respectively. In fact, both Hyderabad and Chennai have witnessed a huge interest from various segments of real estate investors, including funds and developers.
“Due to paucity of ready space and rising real estate prices in Delhi and Mumbai, cities such as Hyderabad, Chennai and Pune have seen a steady rise in demand for both IT and residential space. Many companies in IT, ITeS, BPO, software and manufacturing sectors are increasingly looking at the aforesaid cities and other emerging destinations as attractive centers,” adds Aggarwal.
Another interesting observation was on the plans that developers had for the purchased piece of land. While most of the transactions were for commercial purposes, a few of them were of mixed-use nature as well. Purvankara’s Hi-Tech city project in Hyderabad will make use of the land for mixed development of high-end ultra luxury retail, residential, commercial and hospitality complexes. DLF’s giant Rs 1,675 cr deal last year in the heart of Delhi is a proposed integrated township project comprising offices, shopping malls and residential units.
- Stocks in the news: ZEEL, RCom, IndiGo, YES Bank, UPL and Bharti Airtel
- Take Five: Deal or no deal on trade, Brexit - World markets themes for the week ahead
- Try baked millet spring rolls with pineapple salsa
- VIETNAM BUSINESS NEWS HEADLINES NOVEMBER 28
- Back to school, Mr Gove: authors choose their GCSE set texts
|Everyday may not be good, but there is something good in every day Quote iPhone 4 Case (check at Amazon)||2.0|
|Eathtek New Laptop CPU Cooling fan for Dell Inspiron 17R N7010 0RKVVP MF60100V1-C010-G99(Can not be used in N7110 laptop) (check at Amazon)||0.0|
|.925sterling Silver Vagabond Charm Special Offer Price, Chain Not Included, Comes in a Free Gift Pouch (check at Amazon)||0.0|
|Authentic Sterling Silver Unicorn Charm, Special Offer Price, Chain Not Included, Comes in a Free Gift Pouch (check at Amazon)||0.0|
|Please Put All Sanitary Napkins in the Containers. Do Not Flush Down the Toilet. Thank You. 5"x14" Heavy Duty Plastic Sign (check at Amazon)||0.0|
|The Voices In My Head May Not Be Real Fun Patch - By Ivamis Trading - 4x1.5 inch (check at Amazon)||0.0|
|10 Things You May Not Know About In-N-Out Burger (check at Amazon)||0.0|
|Nations Without Borders: "It is not down in any map; true places never are." - Herman Melville (Volume 1) (check at Amazon)||0.0|
|The Apocalypse Conspiracy: Why the World May Not End As Soon As You Think and What You Should Be Doing in the Meantime (check at Amazon)||0.0|
|OPC UA: The Basics: An OPC UA Overview For Those Who May Not Have a Degree in Embedded Programming (check at Amazon)||0.0|
|Down In the Valley, But Not Alone (check at Amazon)||0.0|
|Meet your Angels: You may not believe in Angels but they believe in You (check at Amazon)||0.0|
|Home at Last: "Down in the Dirt" magazine v123 (May/June 2014) (check at Amazon)||0.0|
|Down in Doradilla: Not Just Another Road Trip... (check at Amazon)||0.0|
|Benner's prophecies of future ups & downs in prices (check at Amazon)||0.0|
|Down the Long Wind Trilogy (Hawk of May, Kingdom of Summer, In Winter's Shadow) (check at Amazon)||0.0|
|Anxiety: Hidden Causes: Why your anxiety may not be "all in your head" but from something physical (check at Amazon)||0.0|
|Pollution, Property & Prices: An Essay in Policy-Making and Economics (New Horizons in Environmental Economics series) (check at Amazon)||0.0|
|You May Not Have Heard This in Church (check at Amazon)||0.0|
|The Temple Is Not My Father: A Story Set in India (check at Amazon)||0.0|
|FLYING WITH THE WINGED ELEPHANT - Niche Opportunities for Global Businesses that May Emerge in India (check at Amazon)||0.0|
|Summer Drinks: 16 Quick & Easy Drink Recipes That Will Cool You Down In The Summer (check at Amazon)||0.0|
|KEEP HIM HAPPY IN BED: The Advice You May Or May Not Want To Hear (check at Amazon)||0.0|
|The Bride Who Would Not Burn, A Play on Dowry Deaths in India (check at Amazon)||0.0|
|Peanuts in School Are Just Not Cool (check at Amazon)||0.0|
|The major warm-up and cool down stretches used in strength training programs (check at Amazon)||0.0|
|My Love Will Not Let You Down (In The Style Of Bruce Springsteen) (check at Amazon)||0.0|
|I Will Not Go Down Under the Ground (Let Me Die in My Footsteps) (check at Amazon)||0.0|
|Alpina SF-5043 Powerful 2200 Watts Turbo Hair Dryer with Air Concentrator & Cool Shot - 220V/240V (Not for Use in USA) (check at Amazon)||0.0|
|Evan-Fischer EVA14672052430 O2 Oxygen Sensor 1-wire Designed to fit screw-in type bungs May not be compatible with flanges (check at Amazon)||0.0|
Property Prices May Not Cool Down In India have 1297 words, post on ezinearticles.com at April 14, 2008. This is cached page on USA Posts. If you want remove this page, please contact us.