The rental retail market of Noida is reviewing the significant slow down in the rates. Observing the present status, the drop in the retail rental values from the last three months varies from 10% to 35%. The malls of Greater Noida and Noida have seen the dip of 20% to 25%. The industry sources informed that in the initial level, the rates of the rental properties in the same micro-markets were similar. But, when they became operational, the rates came down reviewing the footfalls and revenues. Malls in Greater Noida, such as Omaxe Connaught Place, have seen the drop of rental rates by 20% to 25%. The problem identified for this slow down is that the developers are unable to provide the organized retail space. Though some micro markets have seen the mitigation, but it could be for the temporary period. This softening of rentals may give relaxation to the retails business entrepreneurs but it is not a good news for mall owners.

If you are waiting for property prices to fall by the end of the year to buy your dream house in the city, you may be doing the right thing! Realty experts predict a 10-20% fall in residential prices in and around metros. There is respite ahead for people who want to invest in residential property in metros. According to experts, this segment of the market is set to witness a slide in prices soon. That’s because over five million sq ft of residential space is under construction currently in areas in and around Delhi, Mumbai, Chennai, and Bangalore. They say a majority of this supply will hit the realty

After housing and special economic zones, budget hotels and infrastructure are going to be next focus area of investment for realty firm Uppal group. ‘Infrastructure is going to be our next focus area in the coming years. We are interested in highway development projects and water supply infrastructure, which has a huge investment potential in the coming years,’ Manish Uppal, managing director, Uppal group said Wednesday. Uppals have already announced their plan to invest Rs.80 billion in four SEZ projects and two hotel projects. The company has received the notification for two SEZs in Gurgaon, and has got the formal approval for two SEZs planned in Noida and Greater Noida, satellite towns of the national capital. ‘The company is also planning one production based SEZ on Delhi-Chandigarh highway,’ said Uppal. However, he refused to reveal any further detail. ‘Also, we are seriously considering various projects of budget hotels. This is an area which has a huge potential,’ he added. On the slowdown that is looming on real estate sector for the past few months, he said: “The slowdown has mainly affected the luxury housing segment. The mid-segment has seen a price correction of about 10 percent.’ ‘However the actual sales have not been affected. Most of the buyers are now actual end users and not just investors,’ he added. When asked about the source of funding for the projects, he said it would be done through internal accrual, debts and private equity at project level. From: India Prwire Busines Uppal Group to focus on infrastructure, budget hotels

Real estate developer Landmark Group on Thursday said it will invest over Rs 4,000 crore in developing 12 properties across the northern region in the next 3-4 years. “Currently our 12 projects are undergoing in North India, which will be completed in the next 3-4 years. We will be investing about one billion dollar in developing these projects,” Landmark Group Director Amit Kumar told reporters here. The company would fund the projects through internal accruals and raisings from private equities, he said. “We will try to fund our projects through our own resources, but also, we do not mind private equity players’ participation. Starting from 25 per cent, we are ready to sell up to 40 per cent to PE players in different projects,” he added. The NCR-based firm has planned to develop three hotels, two five star and one budget hotels in the next three years, which could entail an investment of about Rs 700 crore. Landmark Group is developing a 3,000-room five star hotel in Dharuhera and a budget hotel in Gurgaon with about 120 rooms. The other five star hotel would come up at Bawal in Haryana, Kumar said. “We will invest about Rs 700 crore in three hotels. Hopefully, this figure will go up as we are planning to develop two more hotels in the coming years,” he said. The company today launched an IT park in Gurgaon, spread over 15 lakh sq ft of land. The construction work would start within four months and it would be ready in three years. “The IT project, Landmark Cyber Park, would have a saleable area of about 12 lakh sq ft and it will require an investment of about Rs 350 crore,” he said.

The land rates have increased by 50 – 60% in Greater Noida. The Noida authority is planning to revise the rates of residential property in Greater Noida. The dream of owning a house in Noida will may end up as a dream only, as the rates are now got almost doubled. Lalit Shrivastava, Chairman Noida and Greater Noida authority, told the pressmen that the property rates have increased by 50-60% in view of the hike in land compensation. The authority is also planning for some developmental projects, for the up coming common wealth games 2010, which requires huge investment. Residential land rates have been raised from Rs.5900 per sq m to Rs.10, 500 per sq m. this has happened just due to hike in land acquisitions. It is required to develop the villages at par with the rural areas. The rural development funds have also been raised from Rs.16 crore to Rs.55 crore.

The land rates in Noida are again going to touch another height. The land authorities of Noida, Greater Noida and Taj Express way has revealed the information about the 35 percent hike in the present land rates in the area. Institutional and commercial properties will see a moderate rise; whereas, the residential properties will be raised significantly. The residential area is divided into five categories. The present rates ranges from Rs. 12000 per square meter to Rs.33000 per square meter. The new proposed rates for the residential property start from Rs.16, 200 per square meter to Rs.44, 500 per square meter.

A committee of 22 members have told the media people that the authorities will go ahead with the proposed hike in the land rates, as the amount paid in compensation to the farmers or the land owners is also doubled.