MHADA INVITES BUYERS FOR LOW-COST HOUSES

For those looking for affordable homes in Mumbai, Maharashtra Housing and Area Development Authority (MHADA) has announced a sale of 3, 863 flats built by it. Ranging from 225 sq ft to 870 sq ft, the prices of these flats vary from Rs 3.5 lakh to Rs 45 lakh depending on the size and location. The homes will be allotted depending on the income of the applicants and Mhada has chalked out four sections: economically weaker sections for income up to Rs 8 thousand per month, low income group (Rs 8 thousand - Rs 15 thousand per month), middle income group (Rs 15, 000 - Rs 20, 000 per month), and higher income group (Rs 20, 000 and above per month). In case the number of applications exceeds available flats, Mhada would resort to drawing lots by a computerized lottery system.

NHB LAUNCHES HOUSING PRICE INDEX IN 5 INDIAN CITIES

In a move that is expected to bring transparency to the real estate market, finance minister P Chidambaram launched the official Housing Price Index, developed by India's home loans regulator, the National Housing Bank. Named as NHB Residex, the index has been introduced as a pilot for five cities-Bangalore, Bhopal, Delhi, Kolkata and Mumbai. The index covers different localities in each of the five cities for five years: 2001-2005. The index will track the movements of residential property prices and can be used to estimate the house wealth, considered an important component of personal wealth. Banks and housing finance companies can also use it in portfolio evaluation and collateral security for their housing loans.

DLF TO INVEST RS.1000 CRORES IN MULTIPLEX BUSINESS

Real estate giant DLF is likely to invest about Rs 1,250 crore on expanding its multiplex business, DT Cinema, by adding about 500 screens in the next four to five years. Currently, DLF is at a pre-operative stage with about seven screens. In another four to five years time, the target is to have 500 screens across India. By September this year, two DT Cinema complexes in Delhi and one in Chandigarh would be operational and 35 screens are expected to be functional in the next seven months. Once these initial projects start, the mid-term aim is to have about 150 screens operational within two years. Apart from north Indian cities, DT Cinema plans to set up multiplexes in Hyderabad , Chennai, Kochi, Bangalore, Mumbai, Pune, Ahmedabad, Goa andKolkata. The size of each multiplex could be between 35,000 sq ft to 90,000 sq ft. DLF believes that the multiplex business offered a big opportunity as there is a shortage of nearly 40,000 screens in India.

MUMBAI FLAT AUCTIONED AT A RECORD PRICE- RS.1.25 LACS FOR A SQ.FT!

India Shining!, remember the Slogan used by BJP during its past government?, here is a BJP person who has Proved this Literally. Cinestar and BJP MP Vinod Khanna has bought a residential apartment at Malabar Hill, in the tony South Mumbai area, from Citibank for Rs 1.25 lakh a sq ft. Khanna has paid Rs 31.25 crore for the 2,500 sq ft flat. The sale price was four times higher than the reserve price of Rs 32,000 per sq ft.

In a similar transaction nearly six months back, a London-based NRI acquired a 3475 sq ft property in NCPA apartments at Nariman Point for Rs 97,842 per sq ft.

Real estate industry experts said the price at which a property was sold cannot be viewed as a benchmark in South Mumbai as the area has a limited supply of real estate. "Buyers are keen on South Mumbai properties due to the status attached to it. Properties in the area will always sell at a premium," said Sanjay Dutt, deputy managing director, Cushman & Wakefield.

Citibank put the flat on sale a fortnight ago and property consultancy CB Richard Ellis was given the mandate to sell it.

While Vinod Khanna could not be contacted for comments, a Citi spokesperson said: "As common with many other multinational organisations, we periodically review our surplus residential estate portfolio in relation to employee requirements as the preference is towards a flexible remuneration policy."

The deal also marks the trend of foreign banks such as American Express, Deutsche Bank and HSBC selling their residential properties in Mumbai. The most prominent among them was high profile stock broker Rakesh Jhunjhunwala buying an apartment from American Express Bank in Mumbai's Malabar Hill for about Rs 25 crore.

Amidst the ongoing property sale by banks, Cushman's Dutt believes that the banks were taking a right step as the property prices were not sustainable in South Mumbai where prices have doubled over the last two to three years.

ETA STAR TO INVEST RS.1,500 CRORES IN MUMBAI

Chennai-based real estate developer ETA Star Property Developers, a part of $4 billion ETA Ascon group based in the UAE, will build a Rs 1,500 crore mall in Mumbai's Juhu area. The construction work will begin in January 2008. ETA has formed a 50:50 joint venture with Supra Estates, to develop the 10 acre plot (450,000 sq ft) into a shopping mall and service apartments. The companies have paid Rs 800-900 crore for the said plot of land. The mall will be given on a seven-year lease upon completion of the project in 2010. ETA has brought Rs 200-250 crore as equity contribution for the project in terms of foreign direct investment (FDI) and will raise the balance through banks and other financial institution. ETA has also forged a joint venture with Wavy Construction for a project based in the hill station of Khandala, Maharashtra. The project involves building luxury villas, health spas, hotels and furnished apartments. Even as the structure of the joint venture is yet to be finalised, both companies will inject Rs 400 crore for the project spread across 28 acres. A US consultancy firm, Tony Asahi, has been appointed to provide a detailed study of the area, which would help draft the final outlook of the project. ETA is currently executing a Rs 13,500 crore integrated township project at Sriperumbudur near Chennai. The project, spread over a land area of 1,200 acres, will be finished in seven years. ETA Star has created a separate special purpose vehicle for the project in which it would hold 59.9 per cent, a foreign partner 40 per cent with Tamil Nadu Industrial Development Corporation holding the rest. ETA Star is talking to a few companies in the US and Europe for the project. The company is involved in real estate ventures mainly in the southern region of the country with projects spread across Chennai, Bangalore and Hyderabad. The company is executing a residential project in Chennai, where it is developing apartments under the name of Jasmine Court. The project follows two other projects 'Binny Crescent' and 'The Gardens', both residential projects in Bangalore.

TOP BIDS WORTH RS 2,790 CRORE FOR BKC PLOT IN MUMBAI

Mukesh Ambani promoted Reliance Industries Limited, Wadhwa Builders, TCG Infrastructure and Hiranandani Constructions have emerged as the leading bidders for the three Bandra-Kurla Complex (BKC) plots in Mumbai measuring 75,350 square metres. The total value of the top bids is Rs 2,790 crore.

Milind Mhaiskar, joint metropolitan commissioner and project director (Mumbai), MUTP, told The Indian Express: “The highest bid per square metre this time is somewhere over Rs 5 lakh, which is easily three times our base price of Rs 1.56 lakh, the amount which was the per square metre bid by Reliance last year when they bagged the convention centre.

In that sense, we are happy with the bids as it reflects a steep upward trend in prices.” According to Mumbai Metropolitan Region Development Authority (MMRDA) Commissioner Ratnakar Gaikwad, MMRDA would lease out its properties for 80 years for the development, operation and maintenance of the commercial complex and car park. “Plots C-70, C-54 and C- 55 (the latter two have been offered as one plot) have been ear marked for commercial and office use while plot C-66 has been reserved for a multi-storeyed car parking for a minimum of 500 cars along with a commercial complex,” he said.

“This is just the first phase of the bidding process and each bid needs to be analysed before they are awarded. These bids will now go to the executive committee after whose approval it will be announced,” Gaikwad said. “Our target is to raise Rs 2,60,000 crore for the development of the entire MMR region based on our draft plan. The bulk of this will be towards all the mass transit projects that have been earmarked as priority, which will partly come from such bids. MMRDA has another 50 acres of area in such plots.”

MMRDA officials said Reliance Industries emerged as a leading bidder for the C-66 Plot (30,550 sq m) with Rs 918 crore at the rate of Rs 3,00,501 per sq m. The second runner-up is RR Mega City, which had quoted Rs 2,13,093.28 per sq m, and the first runner-up is Business Park Town Planners Limited (BPTP) at Rs 2,48,348 per sq m.

For plot C-70 measuring 16,500 sq m, Wadhwa Group has quoted Rs 5,04,000 per sq m for the total at Rs 831 crore. JSW Property Group is the runner-up by quoting Rs 4,50,000 per sq m. Third bidder is Suzuki Powertrain India Limited (SPIL), who have quoted Rs 4,03,000 per sq m.

For plots C-54-55 with an area of 28,300 sq m, a joint venture between TCG Infrastructure and Hiranandani Constructions quoted a bid of Rs 3,67,992 per sq m totalling Rs 1,041 crore. The second bidder for this plot is SPIL at Rs 3,57,000 per sq m and JSW Property Group at Rs 3.33 lakh per sqm.