THE PMK is at it again. It has questioned the alleged allotment of 30 acres of land to the Tatas and 35 acres of land to DLF by the state government for Special Economic Zones (SEZs) in Taramani, a Chennai suburb. The government had not disclosed the price at which the land was sold. Though TIDCO, a state government enterprise, was allegedly a shareholder, its share was a measly 1 percent. Reiterating his partys stance vis-à-vis SEZs, PMK president Dr Ramadoss said that his party was not against SEZs and satellite towns per se in the state but was against real estate business in the guise of SEZs and satellite towns.

His party would launch a peoples movement in support of prohibition with the support of non-government organisations (NGOs). It would organise womens conferences in support of prohibition at all district headquarters. It would be held in Ramanathapuram district on July 8 and in Kanyakumari district on July 9. The womens wing of the party would organise demonstrations in front of TASMAC shops on July 12. It was unfortunate that the state government, instead of taking steps to reduce liquor consumption, was trying to generate more revenue through liquor sale. He would offer suggestions to generate revenue to compensate the loss to the exchequer if prohibition was introduced. Ruling out any reconciliation with the DMK, he said his party continued to be a part of the Congress-led alliance. He alleged that chief minister Karunanidhis DMK was trying to win over the PMK legislators. He attributed this to the DMK governments minority status.

Well, the PMK boss is right in saying that SEZs should not be allowed to be used as a front for real estate business. Towards this end, the extant regulatory mechanism should be fine-tuned if it is inadequate for the purpose. Prohibition works on paper but not in practice. We have seen it all before. It only breeds corruption. However, it can be unofficially enforced by involving NGOs and women, particularly housewives. Ramadoss can utilise the services of film actresses. The cinema-crazy Tamilnadu masses will listen to them more than to law and even God..

More : india.merinews.com

In 2003 Prabhakar Sharma, 45, bought 240 sq. yards of land on Ajmer Road, on the outskirts of Jaipur for just Rs 70,000. In 2006, I sold it for Rs 20 lakh, he says.

Sharma was lucky he had a windfall. Had he wanted to sell it this year, he may have had the same experience as Ramesh Purohit, a retired professor who bought 1000 sq yards for Rs 30 lakh in 2006 and cannot find a buyer.

Jaipurs real estate boom is showing signs of slowing down. Developers say there has been a 25 per cent correction in prices of plots on the outskirts, till recently the pick of the developers.

More : dnaindia.com

According to real estate advisories and consultants, demand for bungalows and apartments in prime areas of central and south Delhi is likely to stay high over the next year. Diplomats and large corporate houses are the main drivers of demand for residential accommodation in these areas.

Point to note is however, Delhi is now more or less saturated and the high demand for residential properties has increased rates beyond the reach of the middle class. As a result, the suburban towns within the NCR have become destinations for new residential projects that offer affordable quality housing to the middle class as well as luxury housing for high- end users, says Anuj Puri, chairman and country head, Jones Lang LaSalle Meghraj (JLLM), a global real estate advisory.

As a matter of fact, Panchsheel Park, Anand Niketan and Dwarka have also been fast coming up as a preferred residential real estate destination for Delhi and Gurgaon residents. The Dwarka sub-city has been designed to cater to a population of 10 lakh people and the current occupancy is approx 30 per cent. Dwarka may soon house a huge District Centre, along either sides of the Metro corridor from Sector 14 to Sector 9 station, as well.

More : indiaprwire.com

Real estate developer DLF will soon get around 5,000 acres near Greater Noida at less than market rate under the Taj Expressway Industrial Development Authoritys (TEA) scheme. Jaypee group, too, has qualified for allotment of 2,500 acres, while Unitech and Punj Lloyd are in queue for 2,500 acres each.

TEA additional CEO C S Verma told ET that the authority will complete the process of acquisition of 7,500 acres in three months, following which it will be allotted to DLF and Jaypee group. We are negotiating with farmers and should be able to finalise the acquisition rate in the first week of July. Once the rate is finalised, it wouldnt take us long to acquire the land, he said.

TEA will transfer the land to realty developers at acquisition cost from the farmers, which is likely to be much cheaper than the market rate developers have been paying privately. The ability to buy large tract of land at a cheaper price without spending much time and energy in the process is what is driving realty players to TEAs Special Development Zone scheme. As realty sector boomed in the past few years, land prices too surged and farmers became more demanding while negotiating a rate with developers.

More : economictimes.indiatimes.com

Revenues benefited from a steady growth in occupancy. The companys strategy of remaining asset-light by operating hotels through management contracts limits its depreciation and other costs, thereby boosting profits.

EIH has around 1,067 rooms under management contract and plans another 775 rooms through its associate Trident hotels in Bangalore, Hyderabad, Manesar and Gurgaon (NCR), taking the room base to 1,842 and adding 35% to revenues by FY10E.

The decision to terminate its alliance with Hilton International for Trident brand properties and develop them independently has not accrued any negatives to EIH. Its Mumbai and Gurgaon properties enjoy a steady influx of business and are already emerging as market leaders. The ongoing plan of an additional 437 rooms in Mumbai Trident properties will boost earnings from FY10.

More : sify.com

DLFs Manesar SEZ deal, in which Mitsui and an IL&FS entity planned to pick up 26% for around Rs 800 crore, seems to be in jeopardy. DLF and the two investors were slated to sign the agreement by March-end, but have now put it on the backburner, sources said.

A source, however, said, After having agreed upon the valuation and the investment figures, DLF is now dragging its feet. Its not clear why DLF is backing out of the deal, but sources said it could be related to the slowdown in the real estate sector that might have changed DLFs priority towards the SEZ and the pace at which it wants to develop it.

A DLF spokesman, however, denied having had any negotiations with Mitsui for investment in Manesar SEZ project.

More : economictimes.indiatimes.com

Real estate company JMD said on Thursday it has roped in property consultancy firm Cushman & Wakefield for an enterprise valuation, in line with its plans for a Rs 200-300 crore public issue in coming four-six months. JMD also hopes to raise a similar amount through private equity, for which it has already initiated discussions with five-seven players, Mr Sunil Bedi, Managing Director of JMD, said.

We have engaged Cushman & Wakefield to do our valuation, based on which we will decide on the quantum of equity to be offloaded. We are also talking to some private equity players and funds from US and Korea for raising up to Rs 300 crore within four months, Mr Bedi pointed out.

He said Cushman & Wakefields report on the companys valuation is expected in a fortnight. JMD hopes that getting listed would re-align the companys debt/equity ratio and also strengthen its branding and visibility in the market.

More : moneycontrol.com

While property buyers across Haryana have welcomed the recent government decision to reduce the stamp duty on conveyance deeds and sale deeds from 6% to 5%, it has brought no relief to residents of Gurgaon. The district administration has imposed a new levy of 2% of the value of property to generate revenue for the recently-created Gurgaon Municipal Corporation (GMC).

Therefore, the buyer has to now pay 7% of the transaction instead of 6% earlier. On an average, Gurgaon generates a daily revenue of about Rs 2 crore from stamp duty and registration fee. However, there is some relief for women buyers who have to pay one per cent less than men i.e. 6%.

According to officials of the revenue department, the better deal for women buyers is already having an impact. They pointed out that in places like Gurgaon and Faridabad, or for that matter any NCR city of Haryana, the property transactions are in crores. In case, a plot costs Rs 1 crore, the buyer would like to get it registered in the name of a woman since he will save at least Rs 1 lakh on account of stamp duty. So, we are witnessing a major shift in the pattern of property ownership with women becoming landlords, said a senior official.

More : timesofindia.indiatimes.com

Unitech Ltd., Indias second-biggest property firm, scrapped plans for a $600 million sale of shares in a real estate investment trust in Singapore, joining rival DLF Ltd. in shunning equity markets after stocks plummeted.

The Gurgaon-based developer will seek $300 million from private equity firms to build hotels and shopping malls in India this year, Managing Director Sanjay Chandra said by telephone today. He didnt say when the initial share sale will be revived.

Chandra aims to win funds from private equity firms after share sales by rivals such as Emaar MGF Land Pvt. failed to attract investors following the global credit contraction. Indias benchmark Realty Index shed 54 percent this year as interest rates at a six-year high and property prices that have doubled deterred new buyers.

More : bloomberg.com

Paras Buildtech – a unit of Paras Build-Call Pvt. Ltd. has announced that Paras Twin Towers, its commercial project located in Gurgaon has become operational. As the name suggests, the project comprises of two towers (Tower A&B) with a combined area of 230,000 sq.ft. Towers A & B have G+3 and G+11 floors respectively with 3 level basements each .

Paras Twin Tower is located at NCRs commercial nerve center in Sector-54, Gurgaon and is a perfect business destination.

Expressing happiness over the inauguration, Mr. Rajinder Takhar, COO, Paras Build-Call said, We are proud to offer Tower A of the Twin Towers to a prestigious company like Cairn India and would take this opportunity to thank our clients for the faith imposed in us. Our project is set to become a landmark in commercial spaces of Gurgaon.

More : indiaprwire.com