While the authorities are set to pump in about Rs 2,168 crore by 2012 (according to the city development report) to augment infrastructure that will propel Faridabad's growth, private developers have started pouring in to create a new Faridabad, spread over 5,000 acres, within the next five years.

Private players who have invested in the region say Faridabad has everything going for it to emerge as a major residential and commercial hub. ''What the city lacked was proper marketing. It has a high potential for growth. With private investment flowing in and big townships coming up, Faridabad has already started marching ahead,'' said Amit Raj Jain, vice-president (marketing) of BPTP Limited.

Developers shifted focus to Faridabad after Gurgaon and Noida reached the saturation point. With property prices still within the reach of the salaried class, it is little wonder that private players like BPTP, Omaxe, Uppal, Ansal API, Reattach and DLF are busy constructing mega townships and commercial projects.

''We aim to make it a city where everyone would wish to live in in the next four-five years,'' says Shiv Bhatia, media advisor to Haryana chief minister.

Adds Tinku Singh, group president of SRS Group, ''The middle class can own a house in Faridabad because of the prices. As of now, we have one major link road (NH-2) from Delhi and it is congested at the border. But with the completion of two more expressways and widening of the Gurgaon-Faridabad road, things will improve. The flyover at Badarpur border will ensure a non-stop ride to the city.''

Singh says Gurgaon has its problems, including water scarcity, while law and order is a burning issue in Noida...

Developers say they are pitching for the Naharpar area as the new centre of Faridabad's growth, primarily because they already own huge patches of land there and also because of its location. ''The land we does not include any hill or water body. This is the reason why we have started to develop this patch as a large integrated township,'' said Jain.

Courtesy: - TOI dtd: - 9^th July 2008

DLF is looking at setting up a Rs 800-crore venture capital fund with a mandate to invest in companies engaged in equipment management and construction. This is being seen as a strategic move by DLF to support its rapidly expanding construction activities.

The Delhi-based firm has filed documents with Sebi seeking approval for the fund. “It is being processed by Sebi. Therefore, we cannot comment beyond this,” said the DLF spokesman. The realty boom of the past three years has changed the scale at which realty firms work in India. Companies have seen unprecedented growth and taken up mega projects, requiring manpower, equipment and management skills of a high order. DLF, India’s largest real estate firm, has been a leader in taking up big projects. It has constructed 9 million sq ft last fiscal and plans to complete 16 million sq ft this year. It has set a target of 22 million sq ft for the next fiscal. With such an ambitious target, DLF needs a strong support infrastructure in place.

 DLF has focused on strengthening its execution capabilities. The venture capital fund will augment the company’s efforts towards quicker execution. The fund will invest in small companies that manage equipment, construction material and manpower. The companies may buy advanced equipment- critical for quick execution-and then lease them to DLF. Similarly, these companies can independently manage construction material and manpower and become a source of supply to DLF, whose operations are now spread across the country. These VC-funded firms which are likely to have long-term agreements with DLF, will also have the option to offer their man and material to other developers.

NEW AVENUES

The setting up of the Rs800-cr fund is seen as a strategic move by DLF to support its rapidly expanding construction activities. The venture capital fund will augment the company’s efforts towards quicker execution. The fund will invest in small companies that manage equipment, construction material and manpower. The Delhi-based firm has filed documents with Sebi seeking approval for the fund.

                                                   Courtesy: - ET dt:-. 8.07.2008

HOME sale in India might have turned sluggish but sales to non-resident Indians (NRIs) are booming. According to Jones Lang Lasalle Meghraj (JLLM), residential sales to NRIs have tripled over the last six month, from 3% to about 10% of  total sales “what would happen when one loses his job in the US The downturn is scaring many NRIs who fear job cuts, “says JLLM’s Raminder Grover. “There is renewed interest in selling abroad,” says Lodha Group senior VP R Kartik. Many NRIs have been thinking of coming back to India and “many of them are making safety investment,” explains Mr. Kartik. Over the last few months, Lodha has seen a 25% increase in its sales to NRIs.

Sobha Developers has seen the share of NRI sales go up from 5% to 10% of its sales. “In the last six months, we have been selling about 25,000sq.ft.a month to NRIs,” says Sobha Developers MD Jagdish C Sharma. Selling to NRIs though is a very different proposition. “You need a different strategy for NRIs. To service the requirements of NRIs, you need to have your own representation in the target market,” says Mr. Kartik.

Omaxe has had road shows in the US, UK, Canada and Dubai to promote its residential projects and have representative offices, too. Omaxe VP marketing Vineet Nanda says, “NRIs made only about 3% of their total luxury apartment sale but today constitute about 10% a good chunk of their NRI sales comes from Middle East.”

For some like Tata Housing it is a much larger business. “We have not done any formal marketing of our properties in the international market but already 10-15% of our sales is to NRIs. When we start our promotions we expect this figure to go up to 25-30% of our total sales,” says Tata Housing CEO Brotin Banerjee. They have received a tremendous response from the US, UK and Canada for their projects in Bangalore, Gurgaon, Chandigarh, and Kolkata. “Many NRIs would like to have a place in India since the country is expected to tide over this downturn and would be a better place to work in the future,” says Mr. Banerjee. Propertymixer. Com CEO Minal Arora says a lot of NRIs who are considering coming back, are securing sales in India.

But not everybody thinks so. For Jayesh Desai, head, real estate Ernst &Young, these are purely investment sales. Well over 50% of NRI sales will be for investment. “With a downturn in the west, India is still a better market for investment. But if they don’t see returns, this segment will start going down too,” warns Desai. According to him, the reality is that the market in India is very tight and Indian speculative investors are out. “The share of the NRI market is higher because of this,” he says. Omaxe ED Vipin Aggarwal, too, subscribes to the same logic. “Most NRIs are buying in India only for investing and not for end-use,” he says.

For developers though, it is a good way to catch up on lost sales in the Indian market. With a big push, a number of developers from across the county are embarking on road shows in market where there is a large NRI presence. The favourites really are the Middle East, U.K. and the U.S. markets.

                                     Courtesy: - ET dt.8.07.2008

The Retail boom is here to stay Inflation may be worrying organised retailers in the form of falling footfalls but softening real estate prices will help them to continue with their planned expansions. In certain markets, the decline in rentals has been to the extent of 5 to 10 per cent and some industry players foresee a further fall of 15 to 20 per in the next few months.

Big Bazaar, Shoppers' Stop, Provogue, Vishal Retail are going ahead with their expansion as planned. A general slowdown, rising of interest rates for home loans and liquidity crunch indicate that the rental rates may dip further Big Bazaar will add 60 new stores by June 2009. It currently has 91 stores across the country Rajan Malhotra, CEO, Big Bazaar said, "The past boom of real estate saw many investors backing projects with incredibly high prices. They may now find it difficult to hold on to the same."

Govind Shrikhande, CEO of Shoppers' Stop, agreed with the expectations of falling rentals. He said, "Logically the rates should come down by over 10 per cent in the next few months. We see a realisation among partners that business cannot sustain with such high prices." Shoppers' Stop plans to fund part of its expansion from its proposed rights is- sue of Rs 500 crore. Provogue, which is planning to add 40 new stores this year is also on track with its plans and considers expansion necessary as it will give the retail chain access to new markets. Provogue's managing director Nikhil Chaturvedi, however, admitted to a slow- down, "There is definitely a slowdown and a 10 per cent reduction in same store sales when compared to last year's figures."

Vishal Retail will add 90 stores this year, of which 19 have already been opened. Manmohan Agarwal, CEO, corporate affairs, Vishal Retail said, "The rates have more or less stabilised in the past few months. We feel that they will soften further by 5 to 10 per cent in the next few months when a lot of projects will be completed and the supply will exceed the demand."

For Megamart- the retail chain of Arvind Ltd the footfalls have dropped by 10 per cent and hence, the chain is wooing consumers with discount offers and freebies to raise the average ticket price. However, it has already decided upon which properties to expand in the coming year. KE Venkatachalapathy, COO, Megamart & Retail, Arvind Brands said, "The rentals are down by 5 to 10 per cent in some markets and we foresee a further drop of 15 to 20 per cent." There are 87 Megamart stores as of now, which will go up to 125 by March 2009.

                                                    Courtesy: - HT dtd: - 4^th July 2008

Housing and construction firm DS Kulkarni Developers (DSKDL) has entered into an agreement with Kardan Group firm, GTC Cyprus, for jointly developing a multi-service SEZ project in Pune. "DSKDL and GTC shall jointly develop a 250 acres multi-service SEZ project in Pune through a 50:50 JV," the Pune-based firm said in a filing to the Bombay Stock Exchange. GTC Cyprus would infuse about $90 million (about Rs 388 crore) against its stake in the JV in a phased manner, the filing said. "Any further equity contribution shall be made by DSKDL and GTC in their respective shareholding proportion," it added.

                                Courtesy: - ET dtd: - July 5, 2008