Prozone sells 27% to Realty Fund

MUMBAI: City based real estate developer Prozone Enterprises has sold a 27% stake in its subsidiary to Triangle Real Estate India Fund for a total consideration of Rs 457 crore. The subsidiary holds stake in four projects that are being developed in Aurangabad, Indore, Nagpur and Jaipur covering approximately 16 million sq.ft.

Prozone Enterprises, is a joint venture between apparel maker Provogue (India) and UK-based Liberty International. Prozone’s arm is developing commercial complexes which would include retail, entertainment, food courts, cafes, restaurants, fine dining, hotels and convention centres.

There have been concerns that the high real estate prices in the country is a bubble. Yet, this deal highlights that investments from foreign companies including real estate funds are continuing unabated. Triangle Real Estate India Fund is co-promoted by ICS group and Old Mutual Investment Group Property Investments, the property division of Old Mutual. In India, Old Mutual is well known as Kotak Mahindra’s partner in the insurance business.

ICS, on the other hand, offers a range of property services together with architectural design services, mall management services and car park management.

Forbes Predication For Real Estate

“Forbes” states that although the global real estate market is softening as credit reservoirs dry, a few spots are poised for growth.” The magazine rated Israel as the world’s most “up-and-coming” real estate market.
“Forbes” notes, “Israel’s real estate market struggled in the late 1990s and early 2000s as the country struggled with deflation. As late as 2006, market weakness had pushed prices down four percent, according to Knight Frank, a London-based real estate research company. But previous year prices climbed two percent. That is expected to continue, given the country’s robust five percent growth in gross domestic product and approx four percent projection for this year, according to the International Monetary Fund.”

Property Rates are going down

This is with respect to the recent hot property news traveling with the speed of 3 × 100000000 meters per second. I am Sanjay Masawan working in IT at Seepz, Mumbai and staying at Malad West.

The latest property news has created an immense chaos not only in the country but abroad also. The upsurge in the property rates has resulted in making the lives of people miserable. The average class people, who dreamt of staying in their own houses, now are living distressfully with the fact that they can never buy a house. The house that was 10 lakhs 2 years back is now selling in 21 lakhs. Even the old building resale flat prices have boosted unnecessarily. This in-affordability has caused great tension in the minds of people, which in turn carry this tension to work also.

Finally there is hope for the people and the property may very soon be affordable again. The government has taken the initiative to coerce the builders to sell the area on Carpet and not "Built Up" or "Super Built Up" area. The government should also keep the key factor in mind that the whole purpose of the Carpet Area exercise should result in reduction of the property prices. If the sellers are selling the properties on Carpet area but at the same price then there is no benefit for common man. Government should do something to make the property affordable to common man.

Finally there is Good news that the property prices have started falling in some the areas of mumbai (thane)

The various factors that have triggered to the rates going down:

1. The new housing policy proposing to make sale of flats only on the basis of carpet area.

2. The government making a positive attempt to repeal the Urban Land Ceiling & Regulation Act (ULCRA) in the winter session of the state legislature beginning December 4 at Nagpur. Government has acquired more than 2,000 hectares across the state under the Act in past two years, including some 400 hectares in Mumbai alone. Unlocking this land would also bring down the property cost in Mumbai by 30% to 40%

3. Govt planning area-wise cap on realty prices across country


FACT: Till now the buyers and sellers both were confused. Even though the sellers were coating a huge price for the flats and the property rates was touching the sky, there were hardly any outright deals taking place.

Rates have already started going down and everyone will definitely move to cheaper areas.

Happy Home
ur friend

Real Estate investment in Gurgaon

The real estate investment in gurgaon has always been an investers dream and it has only esclated with the time, provided you choose the right real estate developer, they have recently come out with an offering on DLF Golf Course Road Gurgaon , these are high end luxary apartments with minimum size of 2800 sq ft and the maximum size being 4100 sq ft. Priced at Rs 7250/- per sq ft , the offering looks quite attractive for end users as well as Investors. The property will become ready for possession within 3 years and located in the best location at Gurgaon.

Real Estate Boom

What u think about real estate?Is there is boom in real estate or if yes so will it continue?