Demand for Luxury Housing Alive- Three Fourth of DLF's Rs 4 crore Luxury Flats in Delhi Sold within 2 Days |
| Posted: 23 Mar 2010 01:50 AM PDT
The rush for DLF flats is further evidence that the Indian realty sector's recovery is real and gathering pace after the sharp spurt in demand for affordable houses in recent months. Besides DLF, developers such as Ansal API, Orbit and Uppal are developing high-end apartments across India. Delhi-based Ansal is looking to launch upscale properties in Lucknow later this year. "The prices will be in the range of Rs 5-10 crore for villas of 4,000-5,000 sq ft," said a spokesman. Orbit Corporation's boutique homes in Mumbai will be sold for nearly 50,000 a sq ft while the Uppals are developing boutique luxury housing projects in the capital in areas such as Vasant Kunj and Shanti Niketan where the rates would be around Rs 40,000 a sq ft. Analysts say with the economy in shipshape and the job market ticking again, consumers are regaining the confidence to invest in swank projects despite the RBI's surprise interest rate hike last Friday. In suburbs and extended suburbs, prices are more a function of location, supply and job creation, said a real estate analyst who did not want to be named as he is not authorised to talk to the media. No market illustrates this facet than Delhi where the property market has long been beset by a space crunch, he said, adding that the stellar response for DLF flats should come as no surprise. After the latest round, the Capital Greens project's total sale value has shot up to around Rs 3,600 crore. In the first phase, DLF sold 1,450 flats for Rs 1,300 crore; in the second, it sold 1,250 flats for Rs 1,700 crore and in the last, 300 flats were sold for Rs 600 crore. The company bought the 38-acre plot in 2007 for Rs 1,650 crore. Even DLF, a name typically bracketed with luxury housing, veered towards affordable properties after the market got hammered by the slowdown as buyers kept away and lending dried up. But a return to upscale properties may be in order with residential prices in metros such as Delhi and Mumbai expected to firm up further in the next few months due to a paucity of supply, said analysts. |
| Developers Eye Business from Setup of Foreign Universities Posted: 22 Mar 2010 10:54 PM PDT
Shobhit Uppal, deputy managing director, Ahluwalia Contracts, feels these hopes are early but hopes to increase his share of the institutional market once foreign universities do set up campuses. The company also participates in the ongoing expansion of IIT campuses, and will also be eyeing the new Indian School of Business to come up at Mohali, near Chandigarh. More than construction companies, it is some niche developers like HCC and SEZ Sri City who see an opportunity by roping in big institutions in their developments. HCC, which is developing a township called Lavasa near Pune, has roped in Oxford University and Ecole Hoteliere, a premier Swiss hotel management school. Sri City, an SEZ 65 km north-west of Chennai, across the border with Andhra Pradesh, is also trying to rope in big names. The idea: once you have a big name like MIT, you could leverage it to attract others and sell them office, residential, and retail space. Developers could make money on the system they create around the institution. Soumyajit Roy, Assistant Vice President (marketing), Jones Lang LaSalle Meghraj, said developers realise that education could be a big demand driver. They are focused on creating education clusters, where universities could come up. In the US, there are many 'knowledge corridors', such as the area around Boston which has lots of universities, research institutions, and industry-academic linkages. Once you have a university, it fosters research institutions and start-ups. Sri City, with over 5,000 acres, is stressing on education as a driver to attract manufacturing units. It is hoping to leverage Chennai's positioning as a manufacturing hub. For instance, if you have an engineering industry, you could have a focused research chair devoted to a particular industry, such as logistics or mobile applications, say experts. Once you have a known university like Oxford or Wharton in your eco-system, it will be easier for a developer to rope in, say, a Google, IBM or Microsoft, which can relate easily to these names. It would allow companies to access research and talent and understand how to work together. ''The whole idea is to brand, give them an incentive to set up base here, and create the right eco-system for it to thrive,'' said an expert. "Developers who have a land bank outside metros and can provide an environment which is campus-oriented could offer good options for universities," said M S Jagan, consultant, Sri City. If the bill is cleared by March, he expects at least 10-11 colleges and universities to get into action mode and set up campuses in two to three years. There are 130 foreign institutions who have some kind of alliances with Indian institutions. Anshuman Magazine, CMD, CB Richard Ellis, however, feels universities are unlikely to rush to set up campuses here. "Universities will be excited about the opportunity but will adopt a wait-and-watch attitude to ensure they don't take a rash decision,"' added Roy. There would be 15-16 colleges who would be keen to enter India but would also prefer to partner with local developers rather than buying the land themselves. However, Pranay Vakil, chairman, Knight Frank, said as many of these universities had big balance-sheets, they are unlikely to partner with developers. They would rather seek land from the state or partner with them, which would also take care of connectivity. "It will create opportunities for companies like Larsen and Toubro, architects and project managers on how to create a university at a much lower cost. Technology will become important," he said. For instance, Mumbai-based architect firm Somaya & Kalapa Consultants has created a school in Baroda which doesn't require any air-conditioning. It has managed to keep the construction cost low by opting for a brick structure and avoiding plaster. Ravi Ramu, director, finance, of Puravankara Projects said there could be many deals between developers and universities in the next two-three years but people need to be cautious. ''Setting up universities is not just about acquiring land and building campuses. People will find it difficult to make money in education, as salaries will shoot up,'' he said. As more seats come up, capitation fees will come down, which will make education less attractive. |
DLF, the country's Biggest Realtor, has sold three-fourths of its upscale flats in central Delhi at Rs 4 crore apiece within two days of launch in a sign that demand for such properties is alive and well despite the drift towards affordable housing. DLF had launched the third and final phase of 150 flats — each measuring 3,000 sq ft or more — of Capital Greens near Moti Nagar last Friday. A DLF spokesman confirmed the sale. "The company has received an overwhelming response," he said, adding that the final number will be known on Monday.
Construction companies and real estate developers smell an opportunity when foreign universities are allowed to set up campuses in India. Last Monday, the Union Cabinet okayed the Foreign Educational Institutions (Regulation of Entry and Operation) Bill. Once cleared by the Parliament, it will enable foreign universities to do so. Construction companies like Ahluwalia Contracts expect business to double from the institutional segment once foreign universities start setting up campuses. Ahluwalia has set up university campuses for Amity University across the country and campuses for JK School in Jaipur, and NIFT and NCERT in Delhi.| You are subscribed to email updates from Indian Property Review To stop receiving these emails, you may unsubscribe now. | Email delivery powered by Google |
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