Real Estate News No 7

Kotaks Purchase Flat in National Centre for Performing Arts Flats for Rs 26 Crore

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MUMBAI: A three-bedroom flat in NCPA flats at Nariman purpose was sold for over Rs 26 crore to Cumulus Trading Pvt. Ltd, an organization promoted by the Kotak family. Flat 72, that contains a built-up space of 2,880 sq ft, was sold by Puma Properties, a 100% subsidiary of metals container maker Kaira will, at a rate of Rs 90,000 per sq. feet.

"Cumulus Trading, an organization majority owned by Suresh Kotak, has bought shares of Puma Properties Ltd from Kaira will Co Ltd on June 11. Cumulus has paid taxes applicable to it," the Kotak cluster said in an exceedingly statement, confirming the acquisition. The flat is found on the seventh floor of the sea-facing tower.

This is the third flat bought by the family in NCPA. In 2006, managing director of Kotak cluster Uday Kotak bought a 3,500 sq-ft four-bedroom flat on the sixth floor for Rs 13 Crore at the speed of Rs 40,000 a sq ft. This apartment is true next to a 2,885 sq-ft three-bedroom flat where the family stayed.

Kaira will have told BSE it had disposed of investment in Puma Properties, while not providing additional details. The corporate bought the apartment 30 years ago for Rs 1.5 Crore.

Property Consultants Say it's not a record-breaking deal; however it assumes some significance because it was sold when the important estate market is sluggish, particularly within the premium phase. "Good buildings command a premium, particularly from neighbors who are able to shell out over a traditional buyer," said Pranay Vakil, chairman of Knight Frank, international property consultant.

Kaira will have sold its entire investment in Puma Properties to the client, effectively transferring the possession of the flat that has been lying vacant for pretty much 2 years.

Real Estate News No 7

Civic Authority BMC Approves 78 Skyscraper development Projects in Mumbai

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MUMBAI: Civic authority Brihanmumbai Municipal Corporation and its high-rise committee have approved development proposals for 78 skyscrapers over 70 meters of height across town. Of those approved proposals, around 38 are new proposals whereas 40 were pending with the sooner committee.

These approvals are being cleared currently within the backdrop of just about quite a year and a 0.5 passing by with none a major approval for realty comes within the town.

Maharashtra Chamber of Housing trade (MCHI) has welcomes the civic authority and its high-rise committee's call to approve these development proposals. With approvals gaining momentum, developers are currently talking concerning passing on advantages of lower interest and financing value to customers.

"We hope environmental committee conjointly offers approvals in time of at intervals four months. With faster and timely approvals developers will save interest value and expire this profit to customers," said Paras Gundecha President of Maharashtra Chamber of Housing trade.

However, the developers' body is disappointed the committee failed to notice favour with the former's proposal of building high-rises on smaller plots. It believes town has already exhausted its horizontal limits. In such a situation, building high-rises in all the plots huge and little is that the solely possibility.

Real Estate News No 6

Good Times Ahead for Property Consumers as Tepid Market Provides a Lot of Bargaining Powers

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A sluggish market brings sensible tidings for potential home consumers. One, they need ample time to come to a decision that house they require to shop for and secondly, they need an enormous sort of unsold properties to decide on from. Also, since there's very little scope for property costs to understand and developers would like cash to continue their comes, they usually return up with special supply costs for restricted periods. This does not mean that they'll not be willing to barter more. In fact, if a developer believes you're a heavy buyer and not simply a 'window-shopper' he may well is inclined to supply you one thing additional. 

So, if you hone your bargaining skills, you'll get a decent discount, that is troublesome in a very bullish market. Says Anuj Puri, chairman & country head, Jones Lang LaSalle India: "Buyers will leverage a flat market and raise for discounts on the stated worth, bargain discount cut worth to own the one-time maintenance charge waived or raise for the parking zone to be included within the price." 

You could conjointly request for a lot of amenities to be included inside constant worth. "Developers might not be snug shelling out money discounts because it would mirror on the acquisition agreement and result in alternative consumers demanding similar incentives. However, they will be willing to supply incentives in kind that don't seem to be evident within the agreement, like a gym membership or discounting the ground rise worth," says Gulam Zia, national director, analysis and advisory services, Knight Frank India. 

Its best if you analysis well before beginning negotiations. Check how long the property has been on the market. If it has been there for quite a year, the vendor could also be a lot of willing to lower his asking worth. This may be true once more if the vendor must create a distress sale. "In a flat market, you'll forever come upon some sellers who are desperately making an attempt to sell their properties for numerous reasons. They might be shifting to a different town or country, or could also be finding it troublesome to repay their loans. In such cases, you'll be able to finagle a more robust deal if you're willing to pay a bigger portion of the worth in money," says Ganesh Vasudevan, VP and business head of Chennai-based realty portal Real Estate. As the market is predicted to still be flat for a few longer, you'll be able to simply outwait a seller. 

Rental Returns 

Generally, a slowdown in Property Purchases tends to point a better demand for rental housing. Demand for rental properties has been growing, on a median, between 10-13% annually in numerous pockets of the country.

Annual rentals, that were within the vary of 4-5% of the worth of the property until 5 years ago have currently grown to 5-7.5%. "When the market is tepid, home consumers tend to attend and watch, expecting realty costs to come back down within the close to future. So, the demand for rental properties will increase," says Zia. 

However, you should not rush to shop for a house merely to earn a high rental income. There are numerous factors to be thought-about. "You ought to make certain that the placement can still be engaging. Rental demand tends to stay high in areas surrounding workplace hubs, where capital values are sometimes the very best," says Puri. You must conjointly check for alternative amenities, like faculties and hospitals, and whether or not useful infrastructure comes are doubtless to come back up soon within the vicinity of the property you wish to shop for.

Real Estate News No 5

Gokaldas PicturesLand in Devanahalli Up for Grabs

BANGALORE: Gokaldas pictures Infrastructure's land parcel in Devanahalli is up for grabs. Canara Bank has taken possession of 26 Acres belonging to the Bangalore-based company beneath the Securitisation and Reconstruction monetary Assets and Enforcement of Security Interest Act (Sarfaesi) 2002.

The Property belonged to SIIC Package, a 100% subsidary of Gokaldas pictures Infrasturucture. The infra division has state of the art garment producing units for various product. Gokaldas pictures are an integrated attire manufacturer with a turnover of over $120 million.

It has 15 factories and employs over 11,000 people. The company's land in Kasaba hobli in Devanahalli is obtainable for outright sale and also the same are sold through a public auction next month. The Sarfaesi Act empowers banks and monetary establishments to recover their dues while not the intervention of the court.

The firm contains a liability of Rs 59 Crore as of June 11, the bank said in its auction notice. The bank can recover the outstanding quantity alongside interest and alternative incidental charges. It’s mounted a reserve value of Rs 81.61 Crore for the bid with an earnest cash deposit of 10% of the reserve value.

When TOI contacted Jagdish Hinduja, managing director of Gokaldas pictures, he declined to inquire into the company's liabilities and also the land auction.

Real Estate Consultants said that the 26 Acre land parcel has been accessible for purchase for quite a while. However the corporate could not shut the deal because the asking value was steep, sources said. Growing demand for residential comes has pushed up land costs in Devanahalli by 30% the last 2 years.

"Land in and round the airport is quoted between Rs 6-7 crore an acre. In fact, the govt. has given Rs 1,147 per sft as compensation for people who surrendered some of their land for road widening," said Ram Chandnani, deputy MD-South India at land consultancy CB Richard Ellis.