After common man, now rich man is the target of Tatas

News Posted - 2010-05-01

NEW DELHI: After wooing the common man with products like the Nano and sub Rs 4 lakh housing, Tatas are now targeting the opposite end of the spectrum with plans to develop apartments in a price range of Rs 3-7 crore.

"We have successfully launched our low-cost housing and it is currently under execution. Now we have ventured into the ultra luxury segment and are offering apartments between Rs 3 crore and Rs 7 crore," Tata Housing Development Company Managing Director and CEO Brotin Banerjee told PTI.

Last year, the company had launched a 1,300-unit low-cost housing project, which offered a room and a kitchen, at Rs 3.9 lakh under 'Shubh Griha' brand at Boisar around 100 km from Mumbai. It plans to take this brand across the country.

Now, Tata Housing has launched a super premium housing complex 'Prive' at Lonavala near Mumbai, which will have 73 units of villas with sizes ranging 4,000-10,000 sq ft a unit.

"These houses will have all means of personalised luxuries such as individual swimming pools. The 21-acre project will be completed within next two years," Banerjee said.

Out of 73 units, he said the company has already sold 23 villas and expects about Rs 300 crore revenue from this project.

Apart from the ultra luxury segment, Tata Housing will continue to operate in the existing three housing segments -- premium (Rs 80 lakh-Rs 2.5 crore), affordable (Rs 15-50 lakh) and value homes (sub Rs 10 lakh).

At present, the company is building about 10,000 housing units comprising 18-20 million sq ft across the country.

Banerjee said most of the projects are being developed in partnership and about Rs 2,000 crore is being invested for completion of the projects by 2011.

On the company's total revenue, he said it will grow by 5-6 times in the next three years.

"It has increased by 8-9 times from 2006," Banerjee said, but declined to share the current turnover of the company.
Source: The Financial Express 25/4/10

2010 Witnesses Stability in Office Space Rentals in India

Rents for office space are seen stable in 2010 as increased spending by IT and ITES firms absorbs space put out over the last few quarters, a recent survey by real estate consulting firm C.B. Richard Ellis showed. The market for commercial space in major Indian cities has seen a boost in demand in the March quarter even as rents remain hobbled by excess supply. “I don’t expect rentals moving up in the near future. The supply is enough, although the market has picked up and office take-up has improved,” Anshuman Magazine, Chairman of C.B. Richard Ellis (South Asia) said.

“It will take time before we see any upward movement in rentals.” The rental values in the central business district of New Delhi appreciated by 4% over the previous quarter while remaining flat in Mumbai, Chennai, Hyderabad and Pune according to the report. The study across seven major cities forecast rents to remain stable overall while they may ease up in New Delhi and Bangalore due to supply beating demand.

Telecom, FMCG and pharma companies are also taking up office space, even as the IT-ITES sector which is seeing rising demand continues to be the major occupier. “Unlike last year, the last quarter of 2009 onwards we have seen demand improving, absorption taking place and there is a momentum in the market,” Magazine said.
Source:Indianrealtynews 26/4/10

94 hopefuls for one house, gap huge in higher categories

Following the verification of applications received for its next lot of 3,449 houses to be allotted by lottery, the Maharashtra Housing and Area Development Authority (MHADA) on Friday released figures that showed that 94 applicants are jostling for every single affordable house built by the board.

However, the discrepancy between houses and applicants is the least in the category of the economically weaker section (EWS), with only 35 in queue for each house. Against this, for every single house in slightly better-off categories, there are a disproportionate number of applicants -- it's a glaring 383 in the lower income group (LIG), 347 in the middle income group (MIG) and 284 in the higher income group (HIG) for each house.

MHADA officials admitted that the number of applicants in the higher categories were overwhelming. "This is typical of consumer behaviour. If a house worth Rs 80 lakh in Versova is being made available for half the price, it will naturally attract a lot of people," one of them said.

A total of 6,370 applications were rejected due to duplication or incomplete data. The official said the list of selected applicants across categories would be put up on the MHADA website soon. "This time the entire work from collection of forms to handing over of keys has been outsourced to a private bank. The interface with the MHADA staff will be limited to holding appeals for applicants at a later stage." The official said once the draw of lots is held on May 18, the procedure of handing over the houses would be completed by the end of this year.

Playing it safe this time around, MHADA added a disclaimer in forms warning people about a problem with water supply in most new colonies owing to the BMC's thrift measures in view of the overall water scarcity in Mumbai.

As a result, the new houses in areas like Malwani in Malad will be getting water supply only after December this year while others like Turbe-Mandala would be getting a steady supply only after December 2011.

Source: The Indian Express 24/4/10