Retail real estate in Hyderabad and Mumbai to see up to $10 Bn Investment

Developers and private equity players are set to put India's retail space market on full throttle with investments worth any where between $5 billion and $10 billion in FY09-FY10.

In moves that would lend retail space gigantic proportions, the Runwal Group and Singapore's GIC will use a joint venture to launch a ‘Our City Centre' retail mall over 1.1 million sq ft of area in Ghatkopar, Mumbai. In the second phase of their foray, they will develop another ‘Our City Centre' over 7 million sq ft of area in Hyderabad. Mumbai-based ICS Group is their project advisor.Equally bullish is Sheth Developers, which is building a shopping centre called ‘Viva City' over1 million sq ft in Hyderabad and Thane, Mumbai. The company is investing Rs 400 crore in this new retail development and has not associated with any private equity firms.

The sudden gush of investments has also swept across smaller cities. Media major Dainik Bhaskar Group will develop a 7.5-lakh sq ft retail mall in Bhopal. With construction already under way, the mall is likely to be up and running in December 2009. The mall comprises a basement, ground and six floors with seven anchor shops, 180 retail shops, six-screen multiplex and food courts. JMC projects have been appointed as the civil contractors and Bentel Associates, Mumbai, are the property advisors.On the crest of the investment wave, Coimbatore-based PS Group is developing ‘Our Grand Mall', which is to be completed over the next 8-9 months. ICS Group is the retail management adviser to this project.The pan-Indian ripples of the ‘boom' are spreading by the day. Provogue India Ltd's real estate arm, Prozone, and UK-based mall property developers Liberty International PLC, are building a big mall each called ‘Prozone Liberty Centers' in Aurangabad, Jaipur, Nagpur and Indore.

According to sources, each shopping centre will be spread across an area of 1.5 million sq ft. Property Zone CEO Ashwin Puri says, "Prozone has formed a special purpose vehicle (SPV) in association with the ICS Group called Triangle Real Estate Fund to manage the Prozone and Liberty International's upcoming shopping centers in India." Meanwhile, DB Realty is developing over five retail malls in western India.According to Sanjeev Dasgupta, chief financial officer and head of investments, Kshitij Investment Advisory Company Ltd, "With $5 billion investments coming into retail real estate development, developers are focusing on retail projects.

For more information about Hyderabad Real Estate log in to http://www.maaproperties.com

Hyderabad's real estate market is regaining its boom

If you concern the real estate of cities like Hyderabad, Gurgaon,NCR(national capital region), Mumbai and Bangalore there is - a slowdown, followed by a correction. The residential and commercial rates of property are in correction mode in Mumbai, Gurgaon, Bangalore, NCR, Hyderabad and some other cities. In fact, property prices kept going up after the second quarter of 2007, but actual deals were not taking place. These cities have witnessed corrections to the tune of 10 per cent to 15 per cent already. Now, looking at global clues and with IT and financial markets in a correction mode we expect to see another additional 10 per cent correction by end 2008" said Naresh Malkani, CEO Indiaproperties.

Malkani looks back at the glory days as to what facilitated the enormous growth for the real estate sector: The IT sector was robust, the dollar was on a high, interest rates were low and concessions were aplenty for the housing market that went through a bad phase between 1997 and 2003, he said.

"Between 2004 and 2006, markets witnessed land prices escalation by over 200 to 300 per cent year-on-year. In 2007 though came the quantum rise in housing finance rates, followed by the drop in dollar - it discouraged NRI buying and slowed down IT spending. With supply still coming in at higher rates due to escalated land valuations, new homes in the market have been rendered almost unaffordable for the masses who form the major chunk of buyers. Given this scene, across all Tier 1 and 2 cities across the country, markets are at best stagnant or in correction mode." summed up Malkani.

At Maa Properties, we have in-depth knowledge of property markets, extensive experience, specialized skills and resources necessary to provide an entire range of reliable and responsive property management services. No matter how far away you are currently located, our online services enable you to take charge of things and efficiently handle all property-related transactions back home.

We would like to take the opportunity to welcome all the community members living world wide to our real estate portal.(NRI)

For More Information about Real Estate Hyderabad, India visit: http://www.maaproperties.com/