Real-Estate News: Empire State Building Prepares for Launch

Here is a look at real-estate news from Wednesday’s WSJ, including the Property Report:

Prices Keep the Locks on Myanmar: For years, international companies wanting to set up in Myanmar were stifled by Western sanctions or rebuffed by the country’s military government. Now, as the country opens up, global corporations are finding a new hurdle: real-estate prices.

Empire State Building Prepares for Launch: The New York family that controls the Empire State Building is about to launch the formal marketing process to sell the building, in what would be one of the largest real-estate initial public offerings and the end of a colorful era for the storied skyscraper.

Placing Bets on Brooklyn: An investor group is betting the growing popularity of New York’s Brooklyn borough will help it resurrect Industry City, one of the largest privately owned industrial properties in New York.

Crowdfunded Hotel Is on Tap: A New York real-estate company that has been a leader in crowdfunding in South America plans to replicate that strategy in the U.S.

Project Promises to Transform Lower East Side: New York City has awarded a development team the rare opportunity to transform a central Manhattan neighborhood, a project of offices, shops and homes spreading out from the foot of the Williamsburg Bridge.

House of the Day: A 1900s Pueblo-style home shared by two siblings includes many of its original charms and expansive views of the mountain landscape.

http://blogs.wsj.com/developments/2013/09/18/real-estate-news-empire-state-building-prepares-for-launch/

Projects in Gurgaon -SREIndia.in

Prism Portico

Spaze Arrow

Baani

Suncity

DLF

http://www.sreindia.in/new-commercial-projects-gurgaon.php

Blueprint to build 24 cities: Will India's biggest infra project, DMICDC, worth $100 bn deliver?

Seated in his Delhi office Amitabh Kant says with a tinge of sarcasm: "I am not here to build a mall." The chief executive of the $100-billion Delhi-Mumbai Industrial Corridor Development Corporation (DMICDC), India's biggest-ever infrastructure project, is piqued about "some people" saying that the project is "not on the fast track".


Several government officials ET Magazinespoke to say DMICDC — which in its first phase will set up six cities each of 40-50 sq km and one of 153 sq km — has to be "expedited" so that it spurs manufacturing growth in the country and helps the country ride out the bad times. Once completed, the mega project is expected to generate 2.15 lakh direct jobs and 6.18 lakh indirect jobs in the country.

The deadline for the first phase is 2019. While Kant finds such statements laughable empty talk, Vinayak Chatterjee, founder and chairman of Feedback Infra, which advises infrastructure companies, makes a point: "Well, it [DMICDC] can't go as fast as his political bosses expect it to because it is a complex project and it is a conceptually sound one. It has to proceed at an appropriate pace."

In its first phase, DMICDC, which falls under the industry ministry and envisages creating 24 new cities in the country by 2040, will build cities around the high-speed 1,483-km-long dedicated freight corridor (DFC), a fast-progressing railway network funded by the Japanese government. DFC doesn't face issues with buying land because it will mostly use the land owned by Indian Railways.




The genesis of the idea called DMICDC lies in the need to develop industries around DFC and that makes a lot of sense, points out Chatterjee. On Tuesday, nine projects of the first phase were approved by the DMIC Trust, a body that gives the go-ahead for individual DMICDC projects once it secures all other regulatory nods. It is headed by the Department of Economic Affairs secretary Arvind Mayaram.

"People who criticise the so-called slowness of the work in progress don't understand how intricate and highly complex this is. In fact, I don't want to do what Kalmadi did," thunders Kant, referring to the sloppy construction work undertaken for the 2010 Commonwealth Games. Suresh Kalmadi, a former Congress leader and Union minister, was later arrested for causing major losses during the event.



Read more:- http://economictimes.indiatimes.com/news/economy/infrastructure/blueprint-to-build-24-cities-will-indias-biggest-infra-project-dmicdc-worth-100-bn-deliver/articleshow/22587266.cms

Realty slowdown: RBI advisory on 80-20 scheme will hit sector

The RBI advisory to banks not to disburse the entire home loan amount extended under subvention scheme upfront to developers will cause problems for the realty sector. It will affect both buyers and developers.

As property sales slowed down because of rise in interest rates, many developers went with this financing scheme. Buyers were told to pay EMI on home loans up to 80% of the house cost after getting possession. In the intervening period, the builder paid EMI on buyer's behalf.

The buyer had to pay only 20% upfront at the time of booking. MD of Gurgaon-based BDI Group Sumit Berry, which launched a project under the subvention scheme, said the formula helped buyers who couldn't afford the double EMI-and-rent burden. This scheme was a blessing for developers too, for they could draw reluctant buyers who'd otherwise shy away considering the double load.

The RBI move will pose immediate problems for projects where such schemes were prevalent, said Anshuman Magazine, chairman and MD, CBRE (South Asia). He said banks should instead ensure due diligence and assess risks before funding builders under these schemes. Many builders recovered subvention cost by jacking up apartment prices.

Chief operating officer of Bangalore-based Nitesh Estates Ashwini Kumar said the scheme was popular and customers had started demanding financing under this formula as a precondition for booking.

Given this backdrop, the feeling in the market is that the RBI advisory will affect the sector. CMD of NCR-based Supertech Ltd R K Arora said: "The customer will be the greatest sufferer. The only source of funds available to the developer is sought to be denied. This will leave many projects in the lurch.''

Arora said this decision, at a time when the sector is reeling under problems from high home loan rates and steep prices due to high input cost, will further added to the woes of the customers, Arora said.

But Parsvnath group chairman Pradeep Jain welcomed the step to link loan disbursal with construction. "It will streamline the sector and curb delivery delays and restrict developers from diverting 80% loan amount to other project."


source:- http://timesofindia.indiatimes.com/business/india-business/Realty-slowdown-RBI-advisory-on-80-20-scheme-will-hit-sector/articleshow/22500653.cms

Succession certificate to TRANSFER PROPERTY

A succession certificate is needed to transfer property in case the deceased does not leave behind a will. TEAM TIMES PROPERTY writes

    Asuccession certificate is an order granted by an authority or court to the successors of the estate of a deceased person on the basis of an application made by them in the capacity of legal heirs, or otherwise entitled to succeed to the estate of the deceased person under certain circumstances. 
    If a person passes away without leaving a will, a succession certificate can be granted by a court to realize the assets, securities and debts of the deceased. 
    It is issued according to the laws applicable in the case of inheritance. 
    A succession certificate is issued to the legal heirs of a deceased person. The certificate establishes the authenticity of the heirs. It also gives them the authority to inherit the property of the deceased person and is issued by a civil court. It is required by the legal heirs to have the securities and other assets transferred to their names. The beneficiary needs to file a petition with the district court or high court where the properties of the deceased are situated or where he normally resided. 
The petition should give details of the case, including: Full name of the deceased Details of time, date and place of death 
    Details like the name and relationship of the petitioner 
    Place of residence of the deceased 
    Details of the family and other kith and kin of the deceased, and their residential addresses 
    Names of all the heirs of the deceased 
    Details of property and debts of the deceased 
    The person applying for a succession certificate has to provide proof of his rights, or establish in what capacity he should be nominated as the successor of the deceased person. The petition should be filed along with a copy of the death certificate. 
    On the basis of the application, the court will issue a notice in the newspapers for a given period. Usually, 45 days are allowed for anybody to represent against the grant of the certificate. 
    In case no one contests the petition on the expiry of this period, the court will pass an order for issuance of the succession certificate. A fee is levied by the court for the certificate in the form of judicial stamp paper. The whole process may take between three and six months. 
    A succession certificate gives authority to the person who obtains it to represent the deceased for the purpose of collecting debts and securities due to him or payable in his name. The grant of a succession certificate is conclusive against the debtor. 
    One can then apply for transfer of property, bank accounts or securities registered in the name of the deceased on the basis of the certificate.

source:- http://epaper.timesofindia.com

Edenia: Affordable WORLD-CLASS STUDIO APARTMENTS

Edenia, at Wave City Center in Noida, is set to transform multi-use studio apartment market in the NCR with world-class units at pocket-friendly prices. RAVI KUMAR MANGALAM writes

    Wave Infratech, one of the leading real estate developers in India, is bringing world-class multiuse studio apartments at Wave City Center, in the heart of Noida.

    Edenia will offer airconditioned studios with commercial licence, which come without any legal or regulatory hassles. This will be a boon for young and ambitious entrepreneurs who can work and live here. 

    “Imagine a place where your workplace turns into your own abode with all the services and your needs being taken care of by a renowned hospitality operator. Edenia will offer such services at an unbeatable locationthe neighbourhood already has superior social infrastructure and ample options for entertainment and retail outlets,” a spokesman of Wave Infratech said. 

    The contract for this tower will be awarded to a construction company of international repute and the project is expected to be completed by end-2016, the spokesman said. 

    Studio and serviced apartments have emerged as smart economical investment options in India, as several top developers have also started offering these in other parts of the country. The demand for studio apartments is outstripping existing supply, generating high rental income, property appreciation, and offering opportunities to high-value business tenants. Investors, especially NRIs, believe that investment in studio apartments is a wise and cost-effective decision, as it offers solid returns in a short duration. 
    The National Capital Region has registered huge demand for studio apartments as expats, investment bankers, designers, architects, consultants, doctors, chartered accountants, etc, who are setting up private consultancies, prefer to live near their place of work. According to industry trends, the main buyers of studio apartments are young entrepreneurs and single workers; also, with many IT companies, financial institutions, and BPOs now setting up their base in the NCR, the demand has only grown. 
    Edenia comes with a complete bouquet of services like concierge service, travel desk, housekeeping, laundromat, etc, on demand. The multi-use studio apartments in Wave City Center come in sizes ranging between 422 sq ft and 678 sq ft, which are priced between Rs 35 lakh and Rs 66 lakh. 
    Experts say that existing and forthcoming landmark infrastructural projects like the adventure park, IT-park (to host 9 IT firms), F1 International Circuit, Yamuna Expressway, FNG Corridor, the proposed cricket stadium, and the proposed 102-heactare night safari in and around Noida have helped in generating a huge demand for these studio apartments. If all these projects are implemented as planned, the concept of fully-furnished serviced studio apartments is here to stay and is the best economical alternative to 5- star hotel accommodations, experts said. 
    The residents of Edenia will enjoy the strategic location advantages like excellent connectivity to the Delhi NCR, which comes from being located in Wave City Center. The firm is also offering various payment plans to meet the requirements of prospective customers. Apart from down-payment plan and construction-linked plan, a special payment plan of 40:30:30 is being offered for Edenia where 40% of the total price is payable at the time of booking, 30% on completion of the superstructure, and 30% on offer of possession, the spokesman said. 
    “There is a rising demand for multiuse studio apartments in Noida, and with Edenia, we are looking to set a benchmark for this product in India with our world-class consultants, contractors, architects and technology partners on board, coupled with convenient payment plans,” the spokesman said. 
    There will 558 units in Edenia, a few of which will be fully furnished and managed by a hospitality service provider, to be launched later. Other facilities include dedicated service elevators, high-tech round-theclock security, high street retail on the lower levels, and an exclusive clubhouse with swimming pool, steam, and sauna. 
    Studio units are also in demand from newly-married couples, especially professionals, who are moving into cost-effective 1BHK flats. The demand for studio apartments is growing not just in the metros but also, surprisingly, in Tier 2 cities where there has been an increase in IT and BPO jobs, which attracts young workforce from across the country. 
    Wave City Center is one of India’s biggest mixed-use residential and commercial development over 152 acres in the heart of Noida. It has a diverse portfolio of products in addition to multi-use studio apartments, like premium and ultraluxury residences, premium office complexes, high street shop condominiums, mall & multiplexes, a range of premium hotels, a convention center and a family entertainment center—all these bringing together the experience of luxury living, hassle-free shopping, comfortable work environment, along with fun and entertainment matching international standards.

source:- http://epaper.timesofindia.com

Realty slowdown: Mumbai sees no big price cuts soon

In early 2013, a central Mumbai realtor's son was set to join his father's business. Then, the slowdown set in. The family patriarch asked the youngster to go abroad for higher studies. 

"For 8 years, real estate provided stability and growth. Now, it's struggling. I expect the market to remain slow for two years. It's better my son uses this time to finish his studies," the developer says. 

After last decade's growth surge, developers have fewer takers. The Mumbai Metropolitan Region (includes Mumbai) has 48 months of unsold inventory, the June 2013 data by real estate research consultant Liases Foras shows. "There's been no price correction here. Developers hiked prices at an average of 4% in the past year," Pankaj Kapoor, MD, Liases Foras, says. Between 2008 and 2013 mid-range property in Mumbai saw a 20%-50% capital appreciation. Capital values of high-end properties increased 40%-85%. 
"Bulk of the residential demand is in the affordable, mid-range segments, which remains largely unmet. In these segments sales have remained stable, depending on location, features and prices. There has been no price slash or big discount," Sanjay Dutt, executive MD, Cushman & Wakefield, says. 

"Although there are some signs of corrections in some speculator-driven markets, buyers should not expect major price corrections as witnessed post-2008. Corrections will be marginal in the suburbs and emerging micro markets. Established micro markets will remain stable in the next 6-12 months,'' Dutt adds. 

Concurring with Dutt, chairman, Mayfair Housing Pvt Ltd, Nayan Shah, says developers now struggle for bank finance and pay higher costs for capital from other sources. Input costs have risen. "Developers are in no position to cut prices beyond 2% to 5%. The slowdown is more to do with doubts in the public mind on the safety of investments and performance of projects. Once a buyer is convinced, he books a flat. This decision period has increased from 15 days to 3 months,'' he says. 

Sluggish sales have forced firms to cut costs. Developers are launching smaller units to keep overall ticket sizes down. Shailesh Sanghvi, director, Sanghvi Group, says: "We believe buyers will soon shrug off their wait-and-watch policy. Companies may offer discounts of about Rs 200 per sq ft in coming festive season." 

source:- http://timesofindia.indiatimes.com/business/india-business/Realty-slowdown-Mumbai-sees-no-big-price-cuts-soon/articleshow/22500671.cms

NHB's residential property index to turn monthly

National Housing Bank’s residential property index, Residex — which made the realty sector sit up and take notice with its announcement last week that 22 of the 26 cities surveyed had experienced a drop in property prices during the April-June quarter — will soon undergo significant changes for a more robust system.

From a quarterly benchmark, Residex will turn a monthly indicator from the next financial year starting April 2014, NHB Chairman and Managing Director R V Verma told Business Standard. Reducing the time lag of the survey will make it a more efficient and robust system, Verma added. Also, Residex’s database will be expanded to cover national banks. Currently, it sources transaction data from 10 housing finance companies and 22 banks. NHB is planning to stretch the scope of data collection to all 30 banks.

Apart from that, the number of cities constituting the Residex is set to go up, too. In the next round for the July-September quarter, 30 cities will be considered. However, Verma said the cities are still being finalised. Over the next two-three years, all 66 cities under the Jawaharlal Nehru National Urban Renewal Mission scheme are expected to be covered.

In the April-June quarter, 75,000-80,000 residential real estate transactions were tracked across 26 cities to arrive at the final Residex result. Transaction details were sourced from banks and housing finance companies.

Of the 26 cities surveyed, 22, including Delhi, Mumbai, Pune, Bangalore and Chennai, saw a drop in property prices during the April-June quarter, compared with the first quarter of this calendar year.

This is the first time in recent years that the residential unit prices have fallen in so many big cities. This also shows that developers are resorting to cuts to spur demand in a slowing market.

According to the NHB Residex, a similar downward trend in prices were last seen in the July-September quarter of 2011, in 10 of the 15 cities surveyed including Hyderabad, Lucknow, Patna, Bhopal and Kolkata. However, even then, big cities such as Delhi, Mumbai, Bangalore, Chennai and Pune were not among those seeing price cuts.

Verma said there is room for some more price correction.

According to the NHB Residex, the biggest price fall in April-June 2013 was seen in Ludhiana, at 5.99 per cent. It was followed by Indore (5.64 per cent), Vijaywada (5.43 per cent), Hyderabad (4.55 per cent), Kolkata ( 4.06 per cent), Guwahati (3.92 per cent), Kochi (3.37 per cent), Patna (3.29 per cent), Coimbatore (3.26 per cent), Ahmedabad (3.13 per cent), Faridabad (2.42 per cent), Chennai (2.26 per cent), Jaipur (1.79 per cent), Chandigarh (1.55 per cent), Delhi (1.49 per cent), Bhopal (1.30 per cent), Meerut (1.05 per cent), Bhubaneswar (1.02 per cent), Bangalore (0.92 per cent), Pune (0.90 per cent), Raipur (0.65 per cent) and Mumbai (0.45 per cent).

Only four of the surveyed cities saw increase in property prices. These were Nagpur (3.07 per cent), Lucknow (2.19 per cent), Surat (1.43 per cent) and Dehradun (0.55 per cent).

source:- http://www.business-standard.com/article/companies/nhb-s-residential-property-index-to-turn-monthly-113090500193_1.html

From the worst to the best performer: Rupee to touch 60 as Raghuram Rajan reverses sentiment

MUMBAI: The currency tide has turned in spectacular fashion. Asia's worst performer until last week, the rupee has become the world's best performer in the past five days as investor confidence has surged following a series of steps to boost inflows and the receding likelihood of a US strike on Syria.

The local currency had its best four-day rally in four decades after Reserve Bank of IndiaGovernor Raghuram Rajan moved to reverse sentiment on policymaking, introducing several measures soon after taking over last Wednesday. Liberal fund-raising rules for banks and exchange risk cover for NRI deposits are estimated to draw about $20 billion in the next few weeks.

The rupee's slump below 60 to the dollar was a "capitulation trade which clearly was overdone", according to Alok Agarwal, CFO at Reliance IndustriesBSE 0.76 %. "The rupee's reversal should take the same path — a move up to 63 against the dollar, with relief and confidence coming back and then a slower appreciation to 60 as the emerging markets steady themselves after the Fed's plans on tapering are known at next week'sFederal Open Market Committee meeting."

The rupee gained 2.2 per cent from Friday's level to 63.84 to the dollar. It's the best performer in the past five days among the 189 currencies listed on the Bloomberg table. The rupee strengthened past 64 for the first time since August 26 to as high as 63.76, Bloomberg data shows. The currency touched an all-time low of 68.84 on August 28.

"Rupee will touch 60," said Harihar Krishnamoorthy, head of treasury at FirstRand Bank. "People are digesting measures taken by both the government and the Reserve Bank of India and they are seen in a very positive light. Reducing geopolitical risks will boost sentiment and cool oil prices."

Fears of a US strike on Syria faded after Russia offered to ensure that chemical weapons would not be used, helping to push oil prices lower. Global stocks surged and currencies gained.

RBI meanwhile allowed a special swap window for FCNR(B) deposits to narrow the current account deficit, a measure of the difference between overseas spending and earnings. RBI will swap the fresh FCNR(B) dollar funds with a three-year tenor at a fixed rate of 3.5 per cent per annum.

"Everyone knows that 65 is way weaker than the rupee needs to be from a competitiveness standpoint," said Jamal Mecklai, chief executive at Mecklai Financial. "Even if India (and the global markets) are hit by another wave of tapering or whatever, I would bet that the ideal rupee will recover into a range of 58 to 64 over the next six months."

The Federal Open Market Committee meeting next week will indicate what Fed ChairmanBen Bernanke plans to do with the quantitative easing programme, which has become the lifeblood of emerging markets in the past few years.

India's economic fundamentals may also improve as exports become competitive after a 20 per cent depreciation of the currency, and tilts trade in its favour. Thetrade deficit for August narrowed to $10.9 billion from $12.26 billion in July, it was announced on Tuesday. The deficit narrowed on lower gold imports, which fell to $0.65 billion from $2.2 billion in May.

Furthermore, RBI's decision to sell dollars to oil companies directly has reduced the monthly current account deficit in the market to just about $1 billion. Oil companies are estimated to contribute about $9 billion to the total $10 billion deficit every month. "With the improvement in the current account deficit, the rupee may appreciate to touch 60 to theUS dollar," said Ashutosh Khajuria, president (treasury), Federal Bank. "People would like to wait till the September 20 policy to watch when the new mood will build up."

Governor Rajan will announce his first monetary policy on September 20. Even if the US Fed reduces its $85-billion-a-month of bond purchases, the impact on the rupee may be minimal, according to experts.

Global funds have sold Indian debt worth $10.2 billion since May 22 when the Fed first signaled tapering. Overseas investors now own about $7 billion of Indian government bonds and even if they pull out, the short-term money is just about $2 billion, while the remaining $5 billion is long-term.

Even equities have begun to attract overseas funds. Foreigners have bought stocks worth nearly Rs 5,000 crore in the past three days. Some have been unnerved by the sharp fluctuation in the currency, with the sudden upswing in the currency leaving them wondering how to hedge exposure.

Raja Shanmugam, a partner at Tirupur-based textile exporter Warsaw International, is "confused" about the direction of the rupee. Most textile exporters booked forward contracts and pre-booked orders at 69-70 to the dollar, he said. "Now buyers have a preconceived mindset of negotiating at Rs 69-70. Our comfort level with the rupee would be at Rs 50-55. Most of us are now moving towards natural hedging instead of forward contracts where we need to worry about volatility."

source:- http://economictimes.indiatimes.com/markets/forex/from-the-worst-to-the-best-performer-rupee-to-touch-60-as-raghuram-rajan-reverses-sentiment/articleshow/22473445.cms

Rupee free fall wipes out meager returns on real estate; makes PE exit painful

MUMBAI/BANGALORE: The depreciating rupee may have helped improve property sales to NRI buyers, but it isn't helping the saviour of real estate developers — private equity firms — which are not only stuck with their earlier investments, but can't raise fresh funds either.

Indian currency's record depreciation against the greenback and weak property market have restricted realty private equity offshore funds' fresh fund raising efforts as well as trapped their earlier investments since FDI gates were opened in 2005. The rupee has depreciated nearly 27 per cent since April 1 to touch a record low of Rs 68.63 against the dollar on August 28. Over the past two years, when most of these exits were being planned, the currency has slipped 46 per cent to touch this level.

It has almost wiped out foreign private equity funds' meager returns from real estate, and any exit now will lead to at least 25-30 per cent loss in dollar terms. "The environment for raising fund from overseas investors is not very conducive. Offshore funds that have invested during the last few years when the US dollar was quoting at Rs 42-52 will find it challenging to offer good returns now because of the fall of the rupee and weak underlying market," says S Srinivasan, CEO at Kotak Realty Fund.

Investments made in Indian real estate sector are cumulatively estimated to be around $15 billion since foreign direct investments were allowed in the sector. Around 20 per cent of this was expected to get an exit in the past two years, but seems a distinct possibility now. Private equity firms with offshore funds are in a state of flux not only because of their stuck investments and delay in project completions, but are also concerned about not being able to raise fresh funds in the current scenario.

"Most capital in Indian real estate was invested at the exchange rate of around Rs 40 to a dollar with the expectation of 25 per cent returns. The current phase of currency depreciation would impact the real estate sector adversely as foreign investors would wait for the full cycle to play out and exchange rate to settle down before taking any fresh investment calls," says Rajeev Bairathi, executive director, capital transaction group and north India, Knight Frank India.

Most real estate funds that have invested at dollar rate of around Rs 40-45 are likely to get an exit after these seven years at more than Rs 60, which is a loss of around 30 per cent in the currency itself. Moreover, most assets, given the weak property market, have not seen any major appreciation.

source:- http://economictimes.indiatimes.com/markets/real-estate/realty-trends/rupee-free-fall-wipes-out-meager-returns-on-real-estate-makes-pe-exit-painful/articleshow/22501425.cms