Mumbai to Witness Spurt in Office Rental Growth

As per JLL’s recent Global Real Estate Outlook, Mumbai’s office space occupiers will have to face upward revisions in rents in the coming years. Compared to Q2 2015 when Mumbai’s rental values had bottomed out, the city will now start to see acceleration in its rental value growth from Q2 2016.

The research tracks rents (in local currency) for prime Grade-A office spaces in several cities’ CBDs (or their equivalent) across the globe. It then puts these cities on a ‘rental clock’ representing the cyclical nature of office rents.

In Mumbai, Bandra Kurla Complex is the de-facto CBD. The original CBD of Nariman Point long lost out to newer micro-markets due to the evolving needs of occupiers, which it has not been able to provide.

In terms of future upward pressure on office rentals, Mumbai is in the company of cities like Sydney, Brussels, Paris, Milan, Amsterdam, Madrid, Chicago and Boston. In 2Q15, Mumbai’s place on the rental clock was shared by Paris, Brussels, Istanbul and Washington DC. Out of these five, Paris saw a drastic acceleration in rental value growth while both Brussels and Mumbai marched ahead at a slower pace. Washington DC, however, still remains at the same place as last year. Interestingly, Istanbul is now seeing rental values of its prime office spaces falling.

Market dynamics

Mumbai, being the financial capital of India, has traditionally seen a lot of office space take-up by BFSI players and IT/ ITeS (mostly back-office operations of BFSI firms) in different micro-markets. Moreover, showing faith in India’s economic growth, many occupiers have been in expansionary mode, says Anuj Puri, Chairman & Country Head, JLL India.

In a report last year, JLL had forecast that average city-level rents will continue to rise and that the city and suburbs will move from being tenant-oriented to being landlord-oriented after 4-5 quarters. A tenant-driven market indicates oversupply of office space, falling rents, weak demand and big incentives available to tenants, whereas a landlord-orientated market indicates limited supply of office space, rising rents, strong demand and no incentives for tenants.

As JLL had also pointed out, occupiers will take up spaces in less ideal locations as good buildings at ideal locations will fill up quickly on the back of continued demand. Grade-B buildings in good areas will also see renewed interest from occupiers. If the state government improves connectivity and takes up more reforms, additional land parcels in the peripheral areas would open up for residential development and existing office districts could then see further expansion.

JLL bags Golden Peacock Global award for sustainability

The leading global real estate services firm JLL has bagged Golden Peacock Global Award for Sustainability from India’s Corporate Institute of Directors.

The award will be presented at a special Golden Peacock Awards Nite at the Millennium Hotel London Mayfair in London.

The Golden Peacock Global Award for Sustainability recognizes companies’ commitment to a more sustainable world across a number of criteria, including corporate governance, economic, environmental and social performance. The award winners adhere to the Corporate Institute of Directors’ mission to lead sustainable business transformation through visionary and holistic awareness of boardroom strategies and practices, good governance, transparency and accountability.

The Golden Peacock award reflects JLL’s ongoing commitment to sustainability globally and to minimize the environmental impact of real estate, as well as enhancing the economic and social benefits of real estate development, according to Anuj Puri, Chairman and Country Head for JLL India.

“By providing sustainability services to our clients here in India and around the world through our network of sustainability professionals, we strive to embed sustainability principles across our advice and services, enabling our clients to achieve more holistic value over the long-term” said Puri, adding, “We believe this award reinforces JLL’s brand and reputation as a global leader in sustainability and our ongoing commitment to being a good corporate citizen in and beyond our business.”

Orris Infrastructure to Begin Commercial Project in Gurgaon

Delhi NCR-based real estate developer Orris Infrastructure Private Limited has recently done the Bhoomi Pujan for its upcoming Commercial property – Market City, in Sector 89, Gurgaon.

Spread over 3.86 acres in the planned 101-acre township – Woodview Residence, Market City is a meticulously planned development located in the happening and bustling Sector 89 of Gurgaon and well connected via Dwarka Expressway, Pataudi Road and the internal sector roads.

Atul Sarin, President – Projects, Orris, who participated in the event, established the corner stone of Market City.

Set to bring together shopping, food, entertainment and global living in an international and eco-friendly designed boutique residences, Market City is will redefine the concept of lifestyles in the modern living.

A series of promenades winding through the commercial district and creating a series of richly landscaped walks and plazas, intertwined with various modes of vertical circulation, Market City will enable people to experience the retail amenities at all levels including broad range of dining facilities from cafes to upscale fine dining, restaurants, bars and lounges.

Along with high-end full furnished and fully facilitated Service Apartments where Scenic and refreshing feel of the landscaped areas with water bodies, seating areas and terraces will be integrated within the development, a statement by the company said.

Vaishnavi Group Bags Honours at Real Estate Leadership Awards 2016

Vaishnavi Group, the leading real estate firm, has bagged Developer of the Year Award 2016 at the Real Estate Leadership Awards organized by CMO Asia recently.

S N Harish, Director Operations of Vaishnavi Group was awarded the 'Most Enterprising CEO of the Year’.  The awards were among those given away across various industries at a glittering award ceremony.

C.N. Govindaraju, Managing Director Vaishnavi Group said, "Being recognized on such a platform is a reiteration of the responsibility we have as leaders in the real estate field."

On receiving the Most Enterprising CEO of the Year Award, S N Harish, said, "I am genuinely pleased and honoured by the recognition. For an individual to reach a high level in their personal career growth, one needs the support of an organization that gives you the room to grow. Vaishnavi Group has always been leaders and will continue to reign high in the field."

Receiving the award on behalf of Vaishnavi Group, Darshan Govindaraju, Director Vaishnavi Group said, "It is an honour to represent the organization and receive this award on its behalf. Being recognized on such a scale and among peers in the industry is an honour and just the motivation we need to set bigger and higher goals for ourselves."

The Real Estate Leadership Awards organized by CMO Asia were divided into Individual categories and Organizational categories. These covered achievements in the field by individuals as well as organizations. Popular Choice awards were also a part of the recognition. All submissions were evaluated to arrive at a shortlist and the winners were chosen by a closed door jury.

Tulip Infratech Completes First Phase of Mega Housing Project in Gurgaon

Gurgaon: Tulip Infratech, one of the leading Real estate development organizations in NCR Gurgaon, has announced completion of 1^st phase of its Group Housing Project- Tulip Violet and started handing over 660 Ready to Move in 4BHK & 3BHK apartments.

Situated at Sohna Road in Sector-69 Gurgaon, Tulip Violet is one of the biggest housing projects and has two types of towers – A and B which are fifteen storied. The A-type towers have 4BHK units and the B-type has 3BHK units. The super area of a typical 4BHK apartment is 2010 sqft and for a typical 3BHK is 1578 sqft. A few towers have penthouses.

Parveen Jain, CMD, Tulip Infratech said: “Tulip Violet is at an ideal location adjacent to Sohna Road and it is a ‘Green Building’ in the making. Countryside pollution free green environment away from tensions of hectic life and easy accessibility to all important destinations, equipped with all the amenities, exquisite landscaping, sports facilities, Club, swimming pool, Golf course and what not has made Tulip Violet as one of the most sought after group housing projects and the ideal choice of buyers and investors.”

Tulip Violet is the Group Housing Residential project which is one of the most prestigious proffers by Tulip. These multistoried apartments have been designed in consonance with the high-end contemporary lifestyle. The main emphasis of this project is to provide a pollution free natural green environment to its residents so that they can experience and enjoy a peaceful countryside living away from the hustle and bustle of the big city life of today’s world.

Tulip Violet is pre-certified as Gold rated Green Building by Indian Green Building Council.

Tulip Violet is spread across over an extensive land area of around thirty nine acres at Sohna Road. Although Violet is cocooned inside the tranquil green natural habitat away from the noise, pollution and congestion of the metro city, yet it enjoys all the location advantages which are easy accessibility to all the amenities and advantages provided by the metro city.

Violet is located on the 60 meter wide proposed sector approach road. Also Violet is at a distance of only about half a kilometer from the proposed metro and southern peripheral road. National Highway NH-8, International and domestic airports are also easily approachable from here. 

It is equipped with the state of the art facilities like 24x7 three tier security, fully fenced boundaries, dedicated car parking facilities, earthquake resistant RCC framed structures, fire safety compliant, modular kitchens, high speed elevators, swimming pool, club, community centre, shopping arcade, kids play area, golf range with putting greens, lawn tennis and badminton courts, jogging track, tree lined roads and walkways, exotic landscaped green lawns with beautiful bollards and lighting poles, ergonomic street furniture and other desired paraphernalia. 

Vast green Golf course has been delineated in the site where people can enjoy playing golf in sunny winters.

No Hope of Revival for Struggling Real Estate Sector this Diwali

Buried under high debt and inability of the developers to complete and hand over the pending projects well beyond the commitments to the hard-pressed consumers, the troubled Indian housing sector is not witnessing any festive activity this year despite the latest cut in the policy interest rate by the Reserve Bank of India (RBI), an ASSOCHAM survey has said.  

  

Based on the data and information collected from 250 builders in the Delhi-NCR, Mumbai, Bengaluru, Chennai, Kolkata, Ahmedabad, Hyderabad, Pune, Chandigarh and Dehradun, the survey found that the demand for new projects is hard to come while new launches have come to a trickle, marked by lack of consumer confidence and cash deficit of the builders.

Under such a scenario, the demand for new launches, if at all there are, has come down by over 50-60 per cent in Delhi-NCR and Mumbai while it is lesser by about 40-45 per cent in Hyderabad and Chennai. In Bengaluru, the activity has come to a total standstill, first by the demolition drive and then by Cauvery dispute agitation, adds the recent survey. 

“Whatever market is there, it is mainly for the end-users and not for investors, sale has been increased for the smaller units (2 BHK & 3 BHK)”, reveals the survey. 

“Customers are preferably looking for ready to move in property rather than going for under construction property. But not many properties fall in this category”, adds the Secretary General D S Rawat.

The resale or secondary market is also dull this festival season, marked by drop of at least 20-25 in prices this festive season. There is very little resale happening especially in the NCR and surrounding areas. Supply is in excess with private small time builders in the unorganised sector flooding the market with units.

The unsold inventory pressure in NCR region is the highest among all other cities. The NCR residential market still has an estimated 1,70,000 units of unsold inventory which is approximately 30% of the units under construction, adds the survey. As per the survey, there are nearly 8-10 million workers engaged in building and other construction activities who face uncertain future if the sector does not revive.

The ticket price 3-bedroom, 2 BHK and single room flats has seen correction by 30% in Noida, 25% in Gurgaon and 15% in some key areas of Delhi, yet the demand stays subdued

All approvals of real estate projects must be accorded in a time bound, accountable and simplifies manner, the ASSOCHAM said suggesting that the process and status of all approvals be made on line so as to bring transparency.

The property analysts have predicted that till March next year the demand for plots, houses and flats may drop by at least 15 to 20%. The housing inventory in the NCR area is huge as a large number of projects are coming up in the peripheral areas, said Rawat.