Wednesday, October 28, 2015
Wednesday, May 28, 2014
Thursday, April 3, 2014
Airline, capital market models drive property sales in Bangalore
http://timesofindia.indiatimes.com/business/india-business/Airline-capital-market-models-drive-property-sales-in-Bangalore/articleshow/33152846.cms
BANGALORE: City-based developers are thinking out-of-the box to market large-scale housing projects. And the strategies appear to be working.
Puravankara Projects launched its theme-based project Purva Palm Beach in Hennur through an IPO-like book building mechanism.
DivyaSree Developers is using an Air Asia-like seat pricing method to sell its inventory of over 1,400 apartments in the Republic of Whitefield project.
"We review sales on a daily basis and only revise prices of fast-selling units. The more popular a certain type of apartment or a block of apartments is, the higher will be its price," said Amit Bagaria, chairman of Asipac Group, the marketing consultant to the project.
The norm in the real estate industry is to increase the per sq ft price of a project as a whole. In Republic of Whitefield, the sales happen like the way low-cost airlines sell their front row, exit row, window and aisle seats.
In Puravankara's case, it first got expressions of interest from buyers, including their preferred price, over a period of 30 to 45 days. "Based on the expressions of interest a certain number of units were released with a specified price band. The buyer is thus assured that he is paying a price that is market-determined," said Jackbastian Nazareth, CEO, Puravankara Projects.
The traditional way is for developers to release products into the market and then react to the demand. The book building method gauges customers' interest upfront. "This not only eliminates any ambiguity, the process of sales gets an impetus," said Nazareth.
While Puravankara's customized Palm Beach IPO was oversubscribed three times, DivyaSree is setting real estate benchmarks, with over Rs 400 crore in sales in less than five months.
Giving a fillip to the marketing initiatives is the sub Rs 1 crore price tag that both projects offer, coupled with a high focus on amenities and other social offerings.
L J Hooker India ran a buyer bid campaign for a residential project Tivoli in Whitefield. "The builder set a reserve price and buyers had a fixed period to make a sealed bid. The highest bids above reserve bought the apartments," said Alexander Moore, CEO, L J Hooker India.
Pankaj Kapoor, MD of real estate research firm Liases Foras, said developers have understood the importance of sales velocity. "They are no longer stubborn about their prices. Their strategies clearly suggest that the focus is on generating higher cash-flows," he said.
Kapoor added that Bangalore developers weren't committing the same mistakes as their counterparts in Mumbai and NCR, where most developers are sitting on piles of inventory and in turn facing stressed cash flows.
Borrowing a sales strategy
Puravankara Projects launched its theme-based project Purva Palm Beach in Hennur through an IPO-like book building mechanism
DivyaSree Developers is using an Air Asia-like seat pricing method to sell its inventory of over 1,400 apartments in the Republic of Whitefield project
L J Hooker India ran a buyer bid campaign for a residential project Tivoli in Whitefield
Puravankara Projects launched its theme-based project Purva Palm Beach in Hennur through an IPO-like book building mechanism.
DivyaSree Developers is using an Air Asia-like seat pricing method to sell its inventory of over 1,400 apartments in the Republic of Whitefield project.
The norm in the real estate industry is to increase the per sq ft price of a project as a whole. In Republic of Whitefield, the sales happen like the way low-cost airlines sell their front row, exit row, window and aisle seats.
In Puravankara's case, it first got expressions of interest from buyers, including their preferred price, over a period of 30 to 45 days. "Based on the expressions of interest a certain number of units were released with a specified price band. The buyer is thus assured that he is paying a price that is market-determined," said Jackbastian Nazareth, CEO, Puravankara Projects.
The traditional way is for developers to release products into the market and then react to the demand. The book building method gauges customers' interest upfront. "This not only eliminates any ambiguity, the process of sales gets an impetus," said Nazareth.
While Puravankara's customized Palm Beach IPO was oversubscribed three times, DivyaSree is setting real estate benchmarks, with over Rs 400 crore in sales in less than five months.
Giving a fillip to the marketing initiatives is the sub Rs 1 crore price tag that both projects offer, coupled with a high focus on amenities and other social offerings.
L J Hooker India ran a buyer bid campaign for a residential project Tivoli in Whitefield. "The builder set a reserve price and buyers had a fixed period to make a sealed bid. The highest bids above reserve bought the apartments," said Alexander Moore, CEO, L J Hooker India.
Pankaj Kapoor, MD of real estate research firm Liases Foras, said developers have understood the importance of sales velocity. "They are no longer stubborn about their prices. Their strategies clearly suggest that the focus is on generating higher cash-flows," he said.
Kapoor added that Bangalore developers weren't committing the same mistakes as their counterparts in Mumbai and NCR, where most developers are sitting on piles of inventory and in turn facing stressed cash flows.
Borrowing a sales strategy
Puravankara Projects launched its theme-based project Purva Palm Beach in Hennur through an IPO-like book building mechanism
DivyaSree Developers is using an Air Asia-like seat pricing method to sell its inventory of over 1,400 apartments in the Republic of Whitefield project
L J Hooker India ran a buyer bid campaign for a residential project Tivoli in Whitefield
Residential land prices shot up by over 35% in 2 years: Survey
http://zeenews.india.com/business/realestate/latest-news/residential-land-prices-shot-up-by-over-35-in-2-years-survey_97329.html
Mumbai: Prices of land, which are used for development of residential projects in Mumbai, have appreciated by almost 35.2 percent over the last two years mainly due to change in norms and increase in property prices, a recent survey said.
A survey conducted by Knight Frank of 13 top Asian cities on the parameters of prices of land used for residential and commercial projects, pointed out that Mumbai is an expensive market compared to Delhi NCR and Bangalore, which have been studied in the report.
According to the report, Mumbai's residential development land prices appreciated by 35.2 percent in the last two years, while those of Bangalore grew by 26.1 percent and Delhi NCR by 24.9 percent.
However, in terms of office space development, land prices fell by 13.1 percent, even as Delhi NCR and Bangalore registered a growth of 16.3 percent and 12.9 percent, respectively.
"Change in development norms coupled with increase in residential prices resulted in an increase in prices for land used for residential development in Mumbai. However, a fall in office space absorption combined with large quantum of supply led to a decline in the office development land index," the report said.
The report noted that prime residential development land index for NCR witnessed an appreciation of 24.9 percent owing to the increase in prime property prices and steady demand.
Emerging markets of Gurgaon illustrate a much higher rise in prime office land values compared to the established markets of Connaught Place and Saket, it said.
In case of Bangalore, increase in property prices and demand for housing due to steady job growth enabled residential land prices to grow 26.1 percent. Similarly, increase in demand from the IT/ITeS sectors pushed office development land prices.
"While Mumbai witnessed maximum appreciation compared to National Capital Region and Bangalore in residential land prices, it emerged as the worst performer in the office space front," Knight Frank Chief Economist and Director ? Research Samantak Das said.
Land prices in Mumbai are likely to continue to grow in the coming future mainly because of its limited availability, poor quality infrastructure and regulatory constraints, that have severely restricted creation of new housing stock, resulting in an ever widening demand supply gap and consequent increase in-built property prices.
Mumbai: Prices of land, which are used for development of residential projects in Mumbai, have appreciated by almost 35.2 percent over the last two years mainly due to change in norms and increase in property prices, a recent survey said.
A survey conducted by Knight Frank of 13 top Asian cities on the parameters of prices of land used for residential and commercial projects, pointed out that Mumbai is an expensive market compared to Delhi NCR and Bangalore, which have been studied in the report.
According to the report, Mumbai's residential development land prices appreciated by 35.2 percent in the last two years, while those of Bangalore grew by 26.1 percent and Delhi NCR by 24.9 percent.
However, in terms of office space development, land prices fell by 13.1 percent, even as Delhi NCR and Bangalore registered a growth of 16.3 percent and 12.9 percent, respectively.
"Change in development norms coupled with increase in residential prices resulted in an increase in prices for land used for residential development in Mumbai. However, a fall in office space absorption combined with large quantum of supply led to a decline in the office development land index," the report said.
The report noted that prime residential development land index for NCR witnessed an appreciation of 24.9 percent owing to the increase in prime property prices and steady demand.
Emerging markets of Gurgaon illustrate a much higher rise in prime office land values compared to the established markets of Connaught Place and Saket, it said.
In case of Bangalore, increase in property prices and demand for housing due to steady job growth enabled residential land prices to grow 26.1 percent. Similarly, increase in demand from the IT/ITeS sectors pushed office development land prices.
"While Mumbai witnessed maximum appreciation compared to National Capital Region and Bangalore in residential land prices, it emerged as the worst performer in the office space front," Knight Frank Chief Economist and Director ? Research Samantak Das said.
Land prices in Mumbai are likely to continue to grow in the coming future mainly because of its limited availability, poor quality infrastructure and regulatory constraints, that have severely restricted creation of new housing stock, resulting in an ever widening demand supply gap and consequent increase in-built property prices.
Thursday, June 20, 2013
Royal Indian Raj Cleared by BCSC
Vancouver, BC, July 17, 2012 - As of April 2010, the British Columbia Securities Commission (BCSC) has formally closed their investigation into Royal Indian Raj International Corporation® (RIRIC).
Allegations of fraud and irregular land acquisition processes surrounding RIRIC's township development activities in India were brought against the company in early 2005 by a former local employee looking to undermine the hard-earned reputation of RIRIC in both North America and India. In addition to RIRIC's early brand incubation of such names as Choice Hotels (15,000 rooms), Century 21, and Caldwell; exclusive rights to the Jack Nicklaus golf courses and Academies; a $1 billion strategic financial relationship with The Greenwich Group; consultancy associations with Jones Lang LaSalle and CPG Corporation (former Singapore Public Works Dept); and financial relationships with Global Emerging Market Fund on a 300,000,000M (GBP) Equity Line of Credit the following townships were presented to the Indian government and proposed for development subsequent to land negotiations and Township master plans submission:
- Royal Garden City Bangalore (2004) - 3,000 acre (146.36 million sq. ft. built-up) "Smart" City, Bangalore, India
- Royal Garden City Mumbai (2004) - 5,000 acre (217,800,000 sq. ft. built-up) "Smart" City, Mumbai, India
- Royal Garden Villas and Resort (2005) - Phase 1: 17 gated communities (600,000 sq. ft.buildable), proposed expansion to 137 acres (5-7M sq. ft.) Bangalore, India
- The Italian Village (2007) - 1,136 acre gated community, Bangalore, India
- Golf India (2007) - a series of prestigious, planned golf course communities across India by golf legend Jack Nicklaus
- The Special Economic Zone (2008) - 12,500 acres for commercial development, State of Meghalaya, India
After an exhaustive review, BCSC lead investigator David Martin determined there were no grounds for prosecution.
"At the end of [that] process, we concluded that there was insufficient evidence to sustain allegations," said Bob Abrams, BCSC Investigations Manager.
"We are very pleased with the BCSC's decision," says RIRIC's chairman Manoj C. Benjamin. "As RIRIC is very vigilant at keeping well-documented records of its cross- border activities in the new emerging market of India and elsewhere we remained confident with the investigation's outcome. The process has nevertheless delayed our progress.We are eager to put the last few years behind us and get our inaugural township project in Bangalore, India, off the ground in mid 2012, move on to other proposed townships as well as internationally incubate big name brands through our vertically integrated development portal.".
The Asia-China-India markets will make up 50% of the world's economy by mid-century; a transformation which, in India, will be "the scale and speed of which has not happened anywhere except China" noted a recent report from Morgan Stanley. International real estate groups have only been allowed to actively invest in the Indian markets since 2004. RIRIC is well-versed in the risks and challenges inherent to developing Eastern markets and is readily equipped to handle the multiple facets of its projects.
"Our vertically integrated proprietary "Smart" township model is unique - and a significant undertaking by any company's standards, " notes Benjamin. "It requires vision, the pursuit of excellence and a hard-headed business acumen. In India it requires additional mastery over many complex risk factors and procedures prevalent in these types of emerging markets such as poor regulatory environments, undefined real estate laws/practices, prolonged re-zoning issues, continuously changing governments, and excessive governmental red tape for project permissions with average approvals taking up to six to eight years. It takes patience, perseverance and personal contacts at the highest political level. RIRIC has all three in abundance."
RIRIC initially entered into their township development projects in 2000. They received Indian Foreign Investment Promotion Board (FIPB ) approvals under India's newly created "Integrated Township Sector" programme in September 2004, and became the first Foreign Direct Investment (FDI) permitted under this initiative. However, government delays of five to ten years, the aforementioned employee's internet sabotage campaign, and other influencing market factors reversed the precision planning and effective advancements to date; it was the perfect storm to stall the company's stellar reputation, integrity and project validity.
The clearance by the BCSC, combined with finalized Indian government permit clearances at the central and state levels, will allow RIRIC to commence phase one of its inaugural Royal Garden Villas & Resort (RGV) Live-Work-Play community in 2013 with phase two and its proposed 3-4 million square feet development anticipated to follow. The RGV project has received over 12,000 sales inquiries in its pre-launch stage. The entire project will be completed in several phases over approximately 5-7 years.
Wednesday, May 29, 2013
Ravi Benjamin Royal Garden Villas Update: ‘Next six months will see property prices soaring ...
Ravi Benjamin Royal Garden Villas Update: ‘Next six months will see property prices soaring ...: Bangalore Giving an insight into the currently buoyant real estate market in Bangalore, Anup Khandelwal, Vice President, Goel Ganga Gr...
Ravi Benjamin Royal Garden Villas Update: North Bangalore residential real estate to remain ...
Ravi Benjamin Royal Garden Villas Update: North Bangalore residential real estate to remain ...: http://www.goodreturns.in/news/2013/01/16/north-bangalore-residential-real-estate-upbeat-jones-la-158338.html
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