Category Archives: India Real Estate

The Mumbai Metro – A real estate game changer

By Ramesh Nair, COO – Business, JLL India

Several years after New Delhi, the country’s political capital, witnessed a transformation with the implementation of the Delhi Metro, the financial capital of Mumbai is set to experience a similar phenomenon with the imminent commissioning of the Versova Andheri-Ghatkopar (VAG) corridor of the Mumbai Metro. With equity participation from Reliance Infra and Veolia (a French transportation major), this PPP initiative has all the hallmarks of a game-changer for the city’s transportation and realty landscape.

The Mumbai Metro – A real estate game-changer

Many facts about the VAG have already been well documented : A project investment of $720 million, a fleet of 16 rakes with 4 fully air-conditioned coaches with an individual capacity of 375 passengers, travel time reduced to 21 minutes from the current 90 minutes between Versova and Ghatkopar – and of course, improved East-West connectivity. However, the impact on the Mumbai realty market is likely to be far more pronounced.

Transportation infrastructure economics have historically proven to have a positive impact on real estate values in a city like Mumbai – residential and commercial properties located close to transportation infrastructure tend to command a premium. Independent analyses of pricing reveal that proximity to a Metro station can single-handedly account for a 22 per cent variation in land values, the other factors being location, distance of the land from the central point and income groups.

On the back of the execution of a string of surface transport infrastructure projects – viz. the Jogeshwari-Vikhroli Link Road (JVLR), the Santacruz Chembur Link Road (SCLR) and the Wadala-Chembur Monorail – the VAG corridor will further stoke the already buoyant Mumbai realty market.

Each of these transportation infrastructure initiatives have had a tonic effect on the adjoining realty micro markets – for example the expected implementation of the Monorail had pumped up property prices in Chembur and Wadala by more than 100per cent in a short span of 4 to 5 years. This also applies to the SCLR, with which the Chembur micro-market again witnessed a perceptible price rise due.

The areas which will benefit from Metro connectivity have already seen price rises of 400per cent over the past eight years, and this trend is set to continue with this imminent launch.

A more detailed impact analysis follows below:

Near-Term Impact
Developers’ interest in projects near the Metro has been increasing since the start of construction. With the commencement of the project, the surrounding region will definitely experience a certain boom in terms of new offerings and price hikes. Rates on both the commercial and residential market will increase, as the properties of northern SBD, BKC and SBD central are the most preferred locations for investors.

Medium – Term Impact
Intra and inter-connectivity in SBD North and the Eastern suburbs will increase tremendously, given the capacity of 7 lakh passengers per day added by the Metro. Concurrently, East-West connectivity will benefit the maximum by this project, which will reduce the burden on JVLR and SCLR (the current East-West corridors).

Travelling to the Eastern suburbs and Navi Mumbai from the Western suburbs and SBD North and back will become faster and more convenient. Among the series of mega-projects such as the Eastern Freeway, SCLR and Monorail in the past one year, the Metro is the biggest so far. The combined effect reflect positively on Mumbai’s real estate market – the residential and retail markets in Andheri, Jogeshwari and Ghatkopar will witness tremendous growth, especially those near the Metro stations.

Long-Term Impact

Long-term value capture would be possible through increase in FSI. If the proposal of granting FSI of 4 to areas near the Metro is approved, it will have a far-reaching impact and potentially transform the entire landscape of areas surrounding the Metro.

Micro-Market Wise Impact:

CBD – Already losing out to BKC and SBD Central, SBD North will now also pose a strong contender as a business destination alternative to CBD. Absorption could reduce due to the trend of shifting away from CBD, which will lead to a correction in prices.

SBD Central – SBD North might not be able to compete with BKC, but it will pose a challenge to SBD Central. Residential and commercial spaces in SBD North may start becoming preferred over SBD Central, especially when favourable prices are found in SBD North.

SBD BKC – BKC will remain largely unaffected – even factoring in the effect of the Metro on SBD North, the advantages that BKC already has will keep it firmly in the #1 position. Absorption and prices will remain steady.

SBD North – The maximum positive effect will be seen in SBD North, as the Metro runs across its entire width, covering practically all the important destinations. Absorption and supply are set to increase rapidly along with capital and rental values. The residential market in certain key areas will see a boost in activity, especially in Andheri West.

Western Suburbs – The Metro will also have a positive impact on the Western suburbs due to the faster connectivity to the Eastern suburbs. Absorption rates and supply will increase marginally. Residential markets will also take off in areas closer to the Metro.

Eastern Suburbs – Besides SBD North, this micro-market is going to see the maximum impact from the Metro. Rental and capital values are set to increase as absorption rates move up. The residential market in areas like Ghatkopar will derive the maximum benefit.

Thane-Navi Mumbai – If at all, Thane and Navi Mumbai will see only a marginal positive impact, as commuting to the Western suburbs and SBD North and back becomes faster. Otherwise, these markets are will remain largely unaffected.

The commissioning of the VAG corridor of the Metro is like to transform the dynamics of the Mumbai transportation, as well as its realty market. In conjunction with the SCLR and the Monorail, the Metro is certainly poised to become a major game-changer for realty investments in Mumbai.

Resource : EconomicTimes

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14th edition of Indian property show opens in Dubai

Three-day exhibition features 40,000 properties worth Dh16 billion for NRIs.

The 14th edition of the Indian Property Show kicked off on Thursday with 40,000 properties from across the country on offer. The properties, spread over four district pavilions, is worth Dh16 billion.

Bollywood filmmaker Arbaaz Khan opened the three-day property event at the Dubai International Convention & Exhibition Centre.

14th edition of Indian property show opens in Dubai

Bollywood filmmaker Arbaaz Khan opened the three-day property event at the Dubai International Convention & Exhibition Centre.

The exhibition targets the needs of NRIs in the Middle East, and features the latest projects in India as well as diverse offerings from India’s top developers. Exhibitors at the show include some of the best Indian real estate developers, construction companies, banks and real estate agents.

With over 150 developers, there are properties to suit every budget from across India. Either it’s someone’s dream home or ideal investment, the show brings properties from Delhi, Noida, Greater Noida, Gurgaon, Punjab, Mumbai, Navi Mumbai, Pune, Chennai, Jaipur, Bengaluru, Mangalore, Kochi, Ahmedabad, Coimbatore, Hyderabad, Nagpur, Lucknow, Goa and many more cities.

Visitors at the show are entitled to get free advice on any of their property related matter whether it’s for new property purchase; concerns related to existing property, tenancy laws etc.

Other highlights consist of series of Free Seminars that are designed to offer interesting insights and analysis for the attending delegates and are conducted by some of the most influential property industry gurus, and legal advisers. Know Your City, a new addition to the list of seminars giving visitors industry insights into new developments in India’s bigger cities also was a big hit last time and the organisers have brought it back with more insightful sessions this time around.

“Investment in Indian property sector is best investment amongst all asset classes for various reasons including highest LTV, tangibility, less volatility, rental income and appreciating asset. And the icing on the cake is that Indian property market is huge and yet affordable compared to international investment destinations. Capital appreciation on real estate in India is far higher than the high-yielding deposits for non-resident Indians (NRIs)”, Sunil Jaiswal, CEO Sumansa Exhibitions, organisers of Indian Property Show, said at the news conference.

Investors Clinic CEO Honey Katiyal commented: “Real estate sector has always been at the top of investment opportunity watch-list of Non-Resident Indians. A place in the homeland also gives a sentimental support and sense of security, which is another reason for their investment in real estate. NRIs invested over $2 billion in Indian real estate in 2013. They spent at least 35 per cent more in real estate across the country in 2013 compared with the previous year and made for almost 12 percent of total apartment sales in the top seven cities. This $2 billion investment does not include Punjab, Gujarat and Kerala states where a bulk of repatriation happens.”

According to the World Bank, India led remittance flows globally, receiving $70 billion in 2013, which eventually leads to investments in real estate, informed Katiyal.

Rajesh Life Spaces director Pratik Patel said: “NRI’s usually look for a property that can replicate their standard of living regardless whether the property will be utilised for end use or taken purely from an investment point of view. They don’t like to compromise on standards, convenience of lifestyle options and most importantly security. Any property with the said features and ranging anywhere between Dh600,000 to Dh1.5 million is popular with them.”

Source : khaleejtimes

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India tops number of foreign investors in Dubai real estate market

India tops the number of foreign investors and investment transactions in Dubai’s real estate market, according to the organisers of a leading property show being held in this West Asian metropolis in the United Arab Emirates (UAE).

India tops number of foreign investors in Dubai real estate market

India tops number of foreign investors in Dubai real estate market

This year’s International Property Show (IPS), to be held April 8-10, will have a large Indian participation under the umbrella of the National Real Estate Development Council (NAREDCO).

NAREDCO is a premier body of Indian developers which works under the aegis of India’s ministry of housing and urban poverty alleviation (MHUPA) and represents a combination of government representatives and private developers.

IPS organisers said that India was reinforcing its stature not only as one of the leading investors in the Dubai realty market but also as a country that offers diverse realty offerings to investors based in the Middle East.

Dubai Land Department (DLD) said earlier that more than 8,092 investors from India notched up transactions worth 17,939 billion dirhams (Around $4,884 billion) in Dubai real estate during 2013, surpassing all foreigner investors in the emirate’s property sector.

“Indian investors are very active in Dubai property sector. Investing nearly 18 billion dirhams in Dubai reflects the huge interest from Indian investors in the Dubai market and their confidence in the lucrative returns,” said Sultan Butti Bin Mejren, director general of DLD.

“Indian investors are very active in Dubai property sector. Investing nearly 18 billion dirhams in Dubai reflects the huge interest from Indian investors in the Dubai market and their confidence in the lucrative returns,” said Sultan Butti Bin Mejren, director general of DLD.

“It is obvious that the Gulf region has presented itself as a key investments player in the world. The well developed infrastructure and strategic location of Dubai will drive this sector to greater success,” he added

Dawood Al Shezawi, chief executive of Strategic Marketing & Exhibitions, the organisers of IPS, said in a statement: “A visit to the NAREDCO India Realty Pavilion will offer Indian expatriates living in the UAE and the Gulf a unique opportunity to select a place back home at a time the real estate is becoming one of the most lucrative investment options for NRIs.”

“For Indians in the Gulf, investing in India is a sentimental decision as it is driven by a need to remain connected to their roots,” Sunil Mantri, president of NAREDCO added.

“With definitive pick up in the economy, as the GDP has improved, inflation has moderated, growth in industrial production is seen with other positive triggers, that has driven the stock markets to the current levels, investment in properties in India would be an lucrative Investment option,” Mantri said.

NAREDCO has announced that the Indian pavilion would include some of the finest properties from across India from developers in Mumbai, Delhi, Bangalore, Goa, Noida and Gurgaon.


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