Coca Cola India rings in top level changes

Earlier this year, the company had promoted India and West Asia CEO and president, Atul Singh, as deputy president of the company's Pacific Group with effect from July 1

Beverages major Coca-Cola India on Friday announced key changes in organisational structure as part of plans to emerge among the top five markets globally for its parent firm.

As part of the reshuffle, Sumanta Datta, currently vice president customer and commercial leadership, will take over as vice president of company bottling operations, while Bhupendra Suri, currently director of franchise operations, is being elevated as vice president of franchise bottling operations.

On the other hand, Vikas Chawla, vice president-operations, is moving to Athens taking over as the franchise operations head in South East Europe.

"Building our talent pipeline and developing people capability is one of our key pillars for success. The new senior level management changes being announced today is a step in that direction," Venkatesh Kini, Coca Cola's deputy business unit president-India and South West Asia, said in a statement.

The entire team will work closely with the company's bottling partners to achieve Vision 2020 goals in India, he added.

The changes are effective October 1, 2013 and all the senior leaders of the company will report to Kini, the company said.

"These (changes) are aligned to the company's long term plans of becoming one of The Coca-Cola Company's top five markets (in volume terms) by 2020," the company said.

"Andriy Avramenko, currently VP - Juice, will take over as Vice President Strategy and Still Beverages," the company said.

Besides, Debabrata Mukherjee will take on the role of vice president- marketing and commercial. Anupama Ahluwalia, currently VP marketing, will take up a short term leadership assignment with Hindustan Coca-Cola Beverages.

"Upon completion of the assignment, Anupama will then return to Coca-Cola India," the company said.

Earlier this year, the company had promoted India and West Asia CEO and president, Atul Singh, as deputy president of the company's Pacific Group with effect from July 1.

Besides, the company had elevated Kini as Deputy Business Unit President, India and South West Asia (INSWA) Business Unit.

The company had said on Thursday that it was not slowing down its USD 5 billion investments by 2020 in India despite the economic downturn in the country.

source:- http://www.moneycontrol.com/news/business/coca-cola-india-ringstop-level-changes_940397.html

National Housing Bank net profit rises by 16% in FY13

The bank has earned highest ever profit in 2012-13. The bank had earned a net profit of Rs 387 crore in the the previous fiscal, NHB Chairman and Managing Director R V Verma said.

National Housing Bank (NHB) on Friday posted 16 per cent jump in net profit at Rs 450 crore for 2012-13.

The bank has earned highest ever profit in 2012-13. The bank had earned a net profit of Rs 387 crore in the the previous fiscal, NHB Chairman and Managing Director R V Verma said.

Total interest income for the fiscal ended June 30, 2013 rose by 21 percent to Rs 3007.33 crore against Rs 2,478 crore in the previous fiscal. NHB follows July-June fiscal year.

The loans and advances of the bank increased by 22 percent to Rs 34,603 crore from Rs 28,490 crore a year ago.

The bank's total loan disbursements during the year were Rs 17,635 crore against Rs 14,454 crore, a 22 percent rise.

Out of which, the share of rural housing was about 44 percent, aggregating to Rs 7,718 crore, he added.

The bank crossed the cumulative refinance disbursement of 1,00,000 crore during the year 2012-13.

Capital adequacy ratio of the bank stood at 16.59 percent while net interest income was 2.23 percent at the end of June, 2013.

Read more:- http://www.moneycontrol.com/news/business/national-housing-bank-net-profit-rises-by-16fy13_940409.html

Ocean Sparkle: Managing Ports Along India's Coastline

With little fuss, the Hyderabad-based port operations company has built a presence all along India’s coastline

Sailing under the radar, Ocean Sparkle Ltd (OSL) has quietly grown into a leading port operations and marine services company. The Hyderabad-based venture, owned by technocrats (55 percent) and private equity players (45 percent), runs one of the largest fleets of harbour craft in the country—about 100, comprising mainly tug boats, mooring boats, dredgers and barges.

Though OSL began as a small marine service provider in 1995, it expanded its operations as India liberalised its port policies. It now has a presence in minor ports all along the coastline. Its main business streams consist of harbour towage, pilotage of various kinds of vessels including specialised tonnage like LNG (liquefied natural gas) carriers, management of ship traffic and communications, mooring services and oil spill response.

Its stature has grown along with the size of its business. In the early stages, port developers would sign only short-term contracts with OSL. But today, most of its contracts with the minor ports are as exclusive service providers. They are also long-term ‘take or pay’ contracts with tenures ranging from five to 20 years. OSL has begun to make inroads into major ports too, with non-exclusive contracts for tug boats. Its operations at Dahej, Mormugao and Ennore, where specialised services are needed, are considered major successes; it is in joint ventures with Singapore’s PSA International at these ports.

OSL also manages three of India’s four LNG terminals. It will soon start bidding for offshore supply contracts catering to the oil industry.
mg_71419_ocean_sparkle_280x210.jpg
The Men Behind It
OSL has four promoters, three of whom are engineers from the Directorate of Marine Engineering Training in Mumbai. They have served in sea-going vessels with large shipping companies. Chairman and Managing Director Jairaj Kumar started off at Great Eastern Shipping Company and later joined Mobil Shipping Company in London, moving back to India with Novopan. He is responsible for business development at OSL. Sanjeev Dhawan, who worked with Kumar at Great Eastern and Mobil, is joint managing director and manages OSL’s dredging activity.

Ashwini Kumar Sawhney is director (technical). He handles the acquisition of new tonnage and their technical upkeep. The fourth promoter, Virender Prasad, is a chartered accountant and has played a key role in pioneering deep sea tuna fishing in India.

Dredging accounts for about 20 percent of OSL’s revenues; 45-50 percent comes from operations at minor ports. Tug boat operations and third-party maintenance at the major ports complete the pie.

Why It Is A Gem
The shipping business is typically cyclical. For instance, after the highs of 2008, the industry is currently faltering. Charter rates are down and shipping stocks are getting hammered at bourses around the world. The ban on iron ore export in India, too, has impacted port operations. However, crude oil, LNG and coal continue to be imported in growing quantities.

As a service provider, OSL has insulated itself from the peaks and troughs of the industry by operating on fixed contracts. “We buy expensive assets [tug boats, etc] so we cannot take the risk,” says Kumar.

Over the years, the company has been able to convince port owners such as Reliance Port and Terminals for Jamnagar and Petronet LNG for Dahej to sign term contracts that hand over specialised functions to OSL. Gopalpur and Marg Karaikal are also in the pipeline.

Why It Was Hidden
OSL’s promoters have been funding their expansion through private equity right from the beginning. Over the years, PE players have exited via secondary sales to newer firms.

The first investors were Risk Capital Technology Corporation and the Andhra Pradesh government-backed venture capital firm, APIDC—they put in Rs 5 crore each. In 2003, Swiss Technology Development entered with Rs 25 crore. In 2008-2009, IFC Washington invested Rs 50 crore. Standard Chartered Private Equity entered with Rs 120 crore last year, valuing OSL at Rs 1,000 crore.

One of the reasons behind OSL’s low profile is that it has not yet raised equity from the public. Kumar says the promoters were about to file for an IPO in 2008 but the crash in the markets led to those plans getting shelved. But it is an option in the future. The other possibility is a strategic sale to a foreign port operator which would allow the PEs to exit. Four PEs, together, hold 45 percent in the company today: India Equity Partners, Kaup Capital of Singapore, IFC and Standard Chartered.
“We’ve had a banking relationship with Ocean Sparkle for many years, and were looking for an opportunity to invest,” says Rahul Raisurana, managing director, StanChart PE.

Risk factors
OSL notched up a PAT of Rs 58 crore in 2012-13 on consolidated revenues of Rs 376 crore. Profits have grown steadily. Yet the slowing down of the Indian economy would be an area of concern. Also, some port operators like the Adanis prefer to conduct the operations themselves. Adani’s Mundra Port has recently overtaken Kandla to become India’s largest private port.


Read more: http://forbesindia.com/article/hidden-gems/ocean-sparkle-managing-ports-along-indias-coastline/35975/1#ixzz2d3JY6XO6

Market Report: Singapore Residential Property

After seven rounds of measures aimed at cooling the residential property market, Singapore's housing market is slowing and will likely have further to fall this year, market watchers say. The latest round of curbs expanded the restrictions to nonresidential real estate for the first time, and many in the city expect an eighth round of restrictions later this year.

Primary residential sales volumes 2008-Q2 - 2013.JPGThe government has been responding to criticism that house values have risen too fast in a short period of time, with plenty of Singaporeans blaming mainland Chinese for the price hikes. Home prices are 52 percent above their troughs during the worst of the financial crisis, according to the brokerage Knight Frank.

With China's growth slowing, most Asian economies are likely to face a challenging couple of years. According to the investment bank Nomura, a slower Chinese economy will likely shave 1.3 percentage points off Singapore's growth rate in 2014, to 2.2 percent rather than 3.5 percent. 

Tourism from China, in particular, would be affected, hurting hotel operators. Some of Singapore's largest developers would also take a hit such as CapitaLand and Keppel Land, because they have diversified extensively into China, as is the case with the bank DBS.

After the latest round of curbs, people who are not permanent residents in Singapore must now pay an extra 15 percent on the top of any purchase price of residential property. The measure has been widely viewed as an attempt to curb the number of purchases by mainlanders. Singapore has also increased the amount that home buyers must put down to 25 percent of the purchase for any second loan. 

WPC News | Savills high end non landed home price index Q1 2008 Q9 2013.JPGThe heavier freight on overseas buyers has had a remarkable effect. The number of foreign buyers, whether local permanent residents or not, fell 24 percent in 2012, compared with the previous year, according to Jones Lang LaSalle. 

The average price of high-end homes fell 1 percent in the second quarter, the first decline in a year, according to Savills. "As the latest rules weigh down on market sentiment, activity in the residential market is expected to moderate over the next few months and developers are likely to adopt a more cautious stance when bidding for new sites," the consultancy said.

The property brokerage Knight Frank anticipates that home prices will fall 5 percent in Singapore this year, while Savills predicts a fall of 3 to 5 percent. Analysts say only deep-pocketed investors are still searching for property in Singapore, with many international buyers having shifted away from protectionist markets like Singapore and Hong Kong to the United States, where it's increasingly clear a housing rally is under way.

Knight Frank global house price index Q1 2013.JPGRents are currently running at around S$521 (US$412) per square meter per year, according to Jones Lang LaSalle, but are likely to fall given the decreasing interest in property. The brokerage noted that 15-year Singapore government bonds are now yielding more than luxury property, meaning very long term investors will start preferring government debt. 

Home-buying habits are also shifting. "In our conversation with our business lines and clients, there is a growing interest in fixed-rate mortgages as buyers look to hedge against any unexpected rise in interest rates," JLL said in a report.

Singapore's real estate investment trusts were down 5.7 percent in June, bringing their year to date performance to a fall of 8.0 percent, according to the Asia Pacific Real Estate Association. That follows a 19 percent gain in the last year. 

WPC News | Major new launches Q2 2013

WPC News | Major upcoming launches in the next six months.JPG

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See more at: http://www.worldpropertychannel.com/asia-pacific-residential-news/singapore-residential-property-housing-market-cooling-measures-real-estate-mainland-china-buyers-knight-frank-7188.php#sthash.HBwwVPgS.dpuf

DLF The Crest One More Gem Stone In Real Estate Gurgaon

DLF The Crest latest luxury residential project by DLF homes in sector 54 Gurgaon. DLF The Crest is second launch of DLF after its successful completion of project DLF Ultima, which is establish in 2013 in Golf Course Road.

The facilities and amenities in DLF Crest include are VRC air- conditioned apartments with air conditioned entrance halls and lift lobbies. Double glazed windows in all bedrooms, dining and living rooms to give you a clear view of nature, and you can enjoy moon nights from the comfort of home. It is designed to make you comfort of nature with all modern facilities. Once you enter into it, everything is available, you don't have to shop. Modular kitchen and pre-fitted ward robes with wide range of appliances are waiting to welcome you.

The skyline of the Gurgaon real estate has been drawn with high and mid raised skyscrapers coming up in every tick of time. With the speedy growth of this conurbation it has encouraged people to settle down here permanently. Besides this, investors have shown keen interest for making investment on Gurgaon properties. One of the foremost reasons that have pulled the global investors into this part of the country is due to its lucrative factor where an assured return is guaranteed. DLF The Crest Gurgaon the recent launch by the venerated builder DLF endeavors to meet the urge of all groups of home buyers.

Representing contemporary architectural designs, this residential project caters the choices of 3 bedrooms and 4 bedrooms banquet homes having 2600sqft to 3900sqft approximate floor area. Thoughtfully planned and fostered under the shadow of ultra modern lifestyle this exquisite address welcomes people who covet for an upscale in life. The layouts are cut edged with cross ventilation as well as enhanced with high level privacy system. DLF The Crest Sec 54 Gurgaon host a herd of world class amenities such as centrally air conditioned with VRV, modular kitchen with appliances, multi tier security, exclusive club house and many more.

Conserving the majesty of the nature this private community is embedded at an area which is covered with a green belt. Away from the hustle bustle of the city life this township is proposed at the fruitful location of Sector 54, Gurgaon having ace network with the key destination of the NCR regions. You can enjoy visiting restaurants, commercial area and other recreational centers at the radius of 2 to 3 kms. Home seekers can eradicate their hunt for a space with the affordable price rate of DLF Crest Gurgaon. Hence, eliminating all your apprehension you can step forward for this venture. They are now constructing residential building in Gurgaon area. This project comprises of all luxuriousness specifications.

source:- http://www.propertyindianews.com/2013/05/DLF-The-Crest-One-More-Gem-Stone-In-Real-Estate-Gurgaon.html

Godrej Properties to raise Rs 700 crore via rights issue

NEW DELHI: Realty firm Godrej PropertiesBSE 0.11 % today said it will raise up to Rs 700 crore by issuing 2.15 crore shares to existing shareholders through rights issue Rs 325 apiece, a discount of about 30 per cent.

The company would issue 8 shares for every 29 shares held by shareholders as on the record date, which is August 20.

The issue price has been fixed at Rs 325 per share, which is almost 30 per cent less than the current market rate.

Shares of Godrej Properties, part of Godrej Group, were trading at Rs 456.05 per share in the afternoon trade.

"The company proposes to issue 2,15,38,388 shares on a rights basis to its existing shareholders as on the record date aggregating to Rs 699.99 crore," the company said in a filing to the BSE.

Promoters had 74.98 per cent stake in the company as on June 30. Mumbai-based Godrej Properties plans to launch the rights issue this fiscal.

This will be the third major fund-raising exercise by the Godrej Properties. The company had launched its initial public offer in December 2009 to raise Rs 468 crore. It had also raised Rs 470 crore last year through Institutional Placement Programme.

In the draft prospectus filed with market regulator Sebi for the proposed rights issue, Godrej Properties said it would utilise Rs 525 crore from the net proceeds towards retiring debt, which currently stands at about Rs 1,600 crore.

"We believe that such repayment/pre-payment will help reduce our outstanding indebtedness and our debt-equity ratio," the company said in the draft document.

In early May, the company's board had approved the rights issue aggregating up to Rs 700 crore.

Godrej Properties is developing residential, commercial and township projects covering about 85 million sq ft in 12 cities. It has recently reported more than two-fold jump in its consolidated net profit at Rs 39.47 crore in the first quarter of this fiscal against Rs 17.15 crore in the year ago period.

source:- http://economictimes.indiatimes.com/markets/ipos/fpos/rights-issues/godrej-properties-to-raise-rs-700-crore-via-rights-issue/articleshow/21678422.cms

Godrej Properties

Gurgaon's residential property update for investors

Over the last one year, capital values rose by more than 30-35 percent in Gurgaon's residential sector. Developers are going slow on execution of real estate projects, resulting in a drop in supply of residential apartments in prime markets. Emerging residential areas are still not able to meet the huge housing demand.
Two key reasons for increasing rental and capital values for residential properties in gurgaon are:

1. Because of rampant construction delays, the expected supply of residential properties announced in early 2009 has not been able to reach the market. Around 500,000 units that were scheduled for possession in key markets by end of 2011 are delayed by another year

2. There has been an increase in lateral hiring by corporates. With job scenario improving all over the country, people have more to spend. This has resulted in good investment opportunities, and investor sentiments in the affordable and mid-income segment of Gurgaon's residential market have improved.

HOT LOCATIONS

Residential property prices on the southern peripheral road connecting to National Highway 8 have seen considerable appreciation over the past few months. This location holds great investment potential thanks to enhanced connectivity that NH8 provides to Manesar and Dwarka. As prices soar in upcoming locations of Gurgaon such as Golf Course Extension, Sectors 70 and Sector 78, buyers have been looking at these alternate locations.

THE DOWNSIDE

Not all residential projects rank equally from an ROI perspective. Whatever appreciation in capital values Gurgaon residential properties have seen does not seem as significant when seen in the light of factors like the higher interest rates on home loans. Nominal capital appreciation of a property may be as high as 25-30 percent, but the actual ROI after making adjustments for inflation and higher interest rates can be nil. There is a 75 percent chance of investing in a property that will not give investor any gains.

Gurgaon is expected to see a residential property supply explosion. There are 55,000 ready flats today. We expect to have around 6000 ready flats by end of 2012, with an additional 65,000 by the end of 2014. Another 20,000 in 2015 will take the final tally to almost 150,000 by the end of 2015. Out of the total supply, properties which offer locational advantages in terms of vicinity to airport and Metros connectivity will have better absorption.

LONG-TERM FUNDAMENTALS

Gurgaon remains promising for office space, and there are good prospects for more major global players setting up operations here in near future. On the whole, this augurs well for the residential property market, more or less assuring relatively healthy absorption of residential space in the times to come. The new infrastructure initiatives of the Government will also play a crucial role for Gurgaon's residential and commercial property sectors.

source:- http://articles.economictimes.indiatimes.com/2012-03-30/news/31260867_1_capital-values-residential-gurgaon

Gurgaon residential property investor update

Over the last one year, capital values rose by more than 30-35% in Gurgaon�s residential sector. Developers are now going slow on execution of real estate projects, resulting in a drop in supply of residential apartments in most prime markets

Over the last one year, capital values rose by more than 30-35% in Gurgaon�s residential sector. Developers are now going slow on execution of real estate projects, resulting in a drop in supply of residential apartments in most prime markets. Emerging residential areas are still not able to meet the huge housing demand.

Two key reasons for increasing rental and capital values for residential properties are:

- Because of rampant construction delays, the expected supply of residential properties announced in early 2009 has not been able to reach the market. Around 500,000 units that were scheduled for possession in key markets by end of 2011 are delayed by another year

- There has been an increase in lateral hiring by corporates. With job scenario improving all over the country, people have more to spend. This has resulted in good investment opportunities, and investor sentiments in the affordable and mid-income segment of Gurgaon�s residential market have improved.

Hot Locations

Residential property prices on the upcoming southern peripheral road connecting to National Highway 8 have seen considerable appreciation over the past few months. This location holds great investment potential thanks to enhanced connectivity that NH8 provides to Manesar and Dwarka. In particular, residential properties along the Dwarka Expressway have attracted interest from the mid-income buyer group. As prices soar in upcoming locations of Gurgaon such as Golf Course Extension, Sectors 70 and Sector 78, buyers have been looking at these alternate locations.

The Downside

That said, not all residential projects rank equally from an ROI perspective. Whatever appreciation in capital values Gurgaon residential properties have seen does not seem as significant when seen in the light of factors like the higher interest rates on home loans. Nominal capital appreciation of a property may be as high as 25-30%, but the actual ROI after making adjustments for inflation and higher interest rates can be nil. There is a 75% chance of investing in a property that will not give investor any gains - and in some cases it may even result in a loss.

Gurgaon is expected to see a residential property supply explosion. There are 55,000 ready flats on the market today. We expect to have around 6000 ready flats by end of 2012, with an additional 65,000 by the end of 2014. Another 20,000 in 2015 will take the final tally to almost 150,000 by the end of 2015.

Out of the total supply, properties which offer locational advantages in terms of vicinity to airport and Metros connectivity will have better absorption. Strategic location and superior amenities will be the keys to profitable residential property investment in Gurgaon in the foreseeable future.

Long-term fundamentals

Gurgaon remains promising for office space, and there are good prospects for more major global players setting up operations here in near future. On the whole, this augurs well for the residential property market, more or less assuring relatively healthy absorption of residential space in the times to come.  The new infrastructure initiatives being undertaken by the Government will also play a crucial role for Gurgaon�s residential and commercial property sectors.

source:- http://www.moneycontrol.com/news/real-estate/gurgaon-residential-property-investor-update_682406.html

Dehradun ranks 5th on NRIs' list of property investment destination

The Rupee's sharp dip against the US dollar has made temptations for non-resident Indian (NRI) to buy property with realtors expecting an increase of 35% in business enquiries from the expatriates this year, reveals the associated chamber of commerce and industry of India (Assocham) recent findings.

Releasing the Assocham paper on “Falling Rupee sparks property boom from NRIs” D S Rawat, Secretary General Assocham said, “With the rupee riding low against the dollar, Indian residents are looking to accelerate investment plans back home”. The rupee has fallen by about 34% against the US dollar since August 2011 and crossed 65 against the dollar.

The survey highlighted that Bangalore is the most favourite property investment destination for NRIs followed by Chennai (2nd), Mumbai (3rd), Ahemdabad(4th), Dehradun (5th). A lot of Punjabis settled in Canada and UK are expected to invest more in Chandigarh sub-urban like Dera basi, Mohali and Panchukla. This time, there is a lower demand for the Delhi-NCR market, adds the Assocham survey.

Assocham conducted a random survey of nearly 1,250 real estate developers in Delhi-NCR, Dera Basi, Mohali near chandigarh, Mumbai, Kolkata, Bangalore, Hyderabad, Ahemdabad, Pune, Dehradun, Chennai etc. The survey reveals that interest for buying property by NRIs have increased due to favourable exchange rates.

“The Indian property developers are anticipating a 35% surge in enquiries to NRI-based purchasers as the rupee dip against the dollar last six months. The decline in rupee has increased property sales because people want to get value for their money”, added majority of developers.

Rawat further said, “It’s definitely not good news for people back at home, but for a non-resident Indian (NRI), this is definitely the best time to invest. At the moment any non-resident Indian buying a property in India can save around 20-30% on his/her property value.

The enquiries may go up further if rupee continues to slide, adds majority of the real estate developers.

The majority of real estate developer said, the NRI traffic is coming primarily from the UAE/Gulf region, US, Singapore, Australia, UK, Canada, South-Africa etc. The demand is more for high end properties and commercial buildings.

As per the recent estimates, nearly 5 million Indian expatriates live in the six Gulf Co-operation Council (GCC) countries of Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the UAE, and they remit close to $30 billion to India every year and have been growing over the years.

Buying a property back home is the top-most priority of every non-resident Indian, at least for those living in the foreign countries as the weakening rupee has given an impetus to fulfill that objective, added 75% of the real estate developers.

The Indian developers are optimistic and expecting to get a good number of booking this year. Their confidence is based on the fact that the rupee is plunging and has fallen 35% in last one year, adds the survey.

The enquiries from NRIs especially from the Middle-East, Europe, the US and Singapore for buying property in India have also risen by 20-25% following the rupee's depreciation.

The record decline in the value of the Indian rupee and the sluggish realty market, proved to be a double delight for overseas Indians investing in property here, adds the Secretary General.


source:- http://www.business-standard.com/article/companies/dehradun-ranks-5th-on-list-of-property-investment-destination-for-nris-113082200977_1.html

Spotting Real Gems

Just like balanced diet, your portfolio should be a healthy mix of varied assets for good growth. That is why financial advisors say that you must invest a part of savings in real estate too.

If you are looking to buy a house for investment in 2013 and are not sure where you can earn the best returns , don't worry. We bring you what experts say about real estate destinations that will give good returns over the next threefive years.

New Ground

In the last couple of years, the real estate market has changed remarkably in both metro cities and small towns. Prices have crossed the peaks reached before the 2008 economic slowdown.

However, in 2012, the companies grappled with economic uncertainty, low demand, fund crunch and high inflation. "High inflation and interest rates dealt a double blow to developers by increasing input and debt costs. Sales fell as buyers became wary of rising interest rates," says Shveta Jain, executive director, residential services, Cushman & Wakefield (C&W) India, a property consultancy firm.

Still, the mid-end residential segment continued to generate buyer interest. This, and increase in prices of raw materials, pushed up prices in most cities.

Realtors will grapple with a lot of inventory and debt in 2013, say experts. "In 2013, developers will price projects more judiciously and offer a lot more pre-launch benefits. Those with large projects and inventory will be under more pressure to give discounts," says Anuj Puri, chairman and country head, Jones Lang LaSalle India, a property consultancy.

The Union Budget can also be a milestone as the sector looks forward to big policy decisions and reforms, including the grant of industry status.

Add caption

Destinations that are expected to give the highest returns on residential properties in the next five years

DELHI-NCR

The Delhi-NCR is the favourite of property consultants. With massive infrastructure works in the pipeline, locations such as Dwarka Expressway, Noida Extension and New Gurgaon are likely to attract a lot of buyers-both investors and end-users.

"The market, once driven by investors, has slowly shifted towards end-users, as the former's cash position worsens and end-users step in to capitalise on low prices," says Aniruddh Wahal, co-head, occupier services, DTZ India, a real estate consultancy.

Dwarka Expressway:

Since 2009, developers have started residential development along the upcoming Dwarka Expressway, an eight-lane expressway that will provide an alternative link between Delhi (Dwarka) and Gurgaon. New projects, expected to be ready by 2015, cater to the middle and high-end segments.

"Its proximity to the capital city and the international airport gives it an edge over other emerging destinations such as Noida-Greater Noida Expressway, Yamuna Expressway, Bhiwadi and Dharuhera," says Wahal.

The area is divided into two parts-the northern region on the side of Dwarka and the southern region closer to Gurgaon. The north (Sectors 103, 106, 109-113) is expected to surpass the south in returns due to proximity to Dwarka and the international airport.

DTZ India says prices in the region will go up by 25-30 per cent per year over the next five years. Knight Frank has forecast an annual return of 16 per cent during the period.

Noida Extension:

Though developers recognise Noida Extension as a separate location, it comprises Sectors 1, 2, 4, 16B, 16C, 16D and Knowledge Park V of Greater Noida. It is close to Noida (10km from Noida City Centre) and 18km from Connaught Place, New Delhi's prime business location. A proposed metro rail link will improve connectivity between Noida and Delhi.

"It is the most attractive location in the NCR for affordable housing and is expected to see yearly growth of 15-20 per cent in the next five years," says DTZ's Wahal. Knight Frank says properties in Noida Extension will give an annual return of 16 per cent over the next few years.

Greater Noida:

With options ranging from Rs 3,200-15,000 per sq ft and returns of 18-30%, residential real estate looks promising over the next five years.

SAMANTAK DAS

Director, Research & Advisory Services, Knight Frank India

Situated around 40km from the south-eastern part of New Delhi, Greater Noida is emerging as an industrial region and an educational hub.

It has good infrastructure and is home to several big companies. It is connected to Noida by a six-lane highway operational since 2002. You can drive from Noida to Greater Noida in 15-20 minutes. The Yamuna Expressway, which has also become a property hotspot, connects it with Agra via Mathura. A metro link will connect it with Noida, Ghaziabad and New Delhi.

Greater Noida is an attractive location for mid- and high-end residential segments. "Though there was not much activity in last 15-17 months due to land acquisition and master plan issues, things are expected to pick up. The area may witness a year-on-year price increase of 20-25 per cent," says Wahal.

MUMBAI

The Mumbai market was subdued in 2012 with prices rising just 2-7 per cent. The demand is expected to pick up in 2013, mainly in the mid-end segment. The eastern suburbs of Mumbai (mainly Chembur, Kurla and Wadala) are expected to provide good returns on account of lower prices compared with areas in central Mumbai and western suburbs.

Ulwe:

Ulwe is an emerging location south of the Panvel creek. It is connected with the Uran Road that connects it with the Thane-Belapur Road as well as the JNPT Road to Jawaharlal Nehru Port. While Ulwe is just 7km from Belapur, a commercial hub, five other office destinations are within the 22km radius. Once the Nerul-Seawood-Uran rail network is ready, Ulwe will be connected with major office locations through a mass rapid transport system. At Rs 4,000 per square foot, one can buy a one-bedroom flat here for Rs 20 lakh. Ulwe is the most attractive destination in the Knight Frank report, which says it may give an annual return of 20 per cent in the next five years.

Chembur:

Located in the Mumbai Metropolitan Region's central zone, Chembur's proximity to the Bandra-Kurla Complex and other office destinations will fuel demand for residential properties here, say experts.

In 2013, developers with large projects and inventory will be under more pressure to give discounts than those with smaller projects and limited inventory.

ANUJ PURI

Chairman and Country Head, Jones Lang LaSalle India

The upcoming rail, metro and road networks such as the Eastern Freeway, the Santacruz Chembur Link Road and the Chembur-Wadala-Jacob monorail will boost connectivity to the area.

Limited land availability will limit new construction and keep supply under control here.

Knight Frank says prices here are expected to rise from the current Rs 12,000 per square foot to Rs 27,000 per square foot by 2017. This comes to an annual return of 18 per cent.

Wadala:

Strategically located in the MMR's central zone, Wadala is at a comfortable distance from the MMR's main employment centres. The Eastern Expressway connects it with other regions of the central zone as well as business hubs in the island city. It is also connected through the suburban train network. It will also benefit from the under-construction Chembur-Wadala-Jacob monorail project as the Wadala-Chembur part is expected to be ready in 2013.

The regional development authority's plan to develop Wadala on the lines of the Bandra-Kurla Complex may add to its appeal. Knight Frank says the area may give an annual return of 18 per cent over the next five years.

BANGALORE

This information technology (IT) hub saw steady sales in 2012, prompting developers to launch new projects. Prices in under-construction projects in growing submarkets have risen by 10-30 per cent in the past one year.

"The demand for houses is expected to remain stable or grow moderately in 2013," says Wahal.

Bangalore is expected to offer an annual return of 15 per cent over the next five years.

"The city is the lowest in terms of capital values (compared with Delhi and Mumbai) and has seen moderate price appreciation," says Jain of C&W.

The international airport and other infrastructure projects have shifted momentum towards the northern and eastern regions.

Kanakpura, Sarjapur Road, Bannerghatta Road, JP Nagar, Jaya Nagar, Whitefield, Varthur, Mahadevapura, CV Raman Nagar, Uttarahalli, KR Puram and Electronic City have emerged as the city's main residential markets.

Hebbal:

The Bangalore international airport has made Hebbal an important destination. It has also emerged as an IT hub with several technology parks and companies.

In 2013, the demand for residential units in the top eight cities is expected to be 3.3-3.5 lakh as against the supply of 2.2-2.3 lakh units.

SHVETA JAIN

Executive Director, Residential Services, Cushman & Wakefield India

Hebbal has good infrastructure to support residential growth. New monorail and high-speed rail networks along with the Bangalore metro will boost its connectivity.

KR Puram:

Closeness to the IT hub of Whitefield and Manyata Tech Park makes it a desired residential destination for IT professionals. KR Puram is located on the National Highway 75. The Baiyappanahalli metro station is just 3km away. The proposed Peripheral Ring Road and widening of the Old Madras Road will improve connectivity.


source:- http://businesstoday.intoday.in/story/best-place-to-buy-a-house-in-delhi-bangalore-mumbai-in-2013/1/191109.html